CSR & Ethics Report: Origin Energy Analysis - CRSE108 KIA Report

This report analyzes the benefits of Corporate Social Responsibility (CSR) to organizations, stakeholders, and communities, using Origin Energy as a case study. It explores how CSR initiatives can strengthen operations and benefit various stakeholders, including shareholders, employees, customer...Read More

CORPORATE SOCIAL RESPONSIBILITY AND ETHICS 1
CORPORATE SOCIAL RESPONSIBILITY AND ETHICS
BY
Class (Course)
Professor (Tutor)
Name of the School
City and State
The Date

CORPORATE SOCIAL RESPONSIBILITY AND ETHICS 2
Executive summary
The purpose of this report is to analyze possible benefits of Corporate Social Responsibility to an
organization, the stakeholders and the community. Too often many businesses have viewed CSR
as pressure or a fad that has no impact on the company. It is not until recently that business
managers have realized that they need CSR is an opportunity to strengthen their operations and
at the same give back to the community where they are operating. Research shows that CSR
initiatives bring many benefits to shareholders, employees, customers, the community, and the
company itself. Currently, businesses are viewing CSR as a tool that can be used to address key
business issues. This report uses both primary and secondary methods of data collection to
analyze the corporate social responsibility activities and governance of Origin Energy.
Introduction
Origin Energy is an Australian based energy company which majors in electricity production,
Natural gas exploration and production, and energy retailing. Australia is a country that uses a lot
of energy and according to world standards; the country’s energy system is reliable although
sometimes it is stretched to the limits. Energy is a limited resource and which is hard to store.
Australia is moving towards producing energy from renewable sources although the highest
percentage of energy used there comes from fossil fuels. Origin Energy which was formed in
2000 is a responsible company that produces affordable energy and at the same time cares for the
environment by ensuring that all their activities are ethical and responsible. Throughout their
history, the company is committed to ensuring that their primary focus is on the community,
sustainability, health and safety. At Origin Energy, the board is much aware of the need to
maintain the highest standard of corporate governance and it is its responsibility to meet the

CORPORATE SOCIAL RESPONSIBILITY AND ETHICS 3
stakeholder’s interests. The Origin Energy board is made of the chairman who is non-executive,
two executive members, and five directors. The board has the responsibility of controlling the
company and setting strategies and the same time providing leadership.
Background
Energy is a limited resource which costs people millions of dollars every day to purchase energy
products. Origin Energy is a group that is committed to protecting the environment by ensuring
that all its operations comply with environmental regulations and requirement (Trong 2012, p.
122). Everything that the company does is environmentally conscious and they collaborate with
other companies like those which produce food to ensure that they practice farming which is not
harmful to the environment. Corporate social responsibility is all about giving back to the
community without expecting anything directly from those who will benefit (Verma & Prakash
2011, p. 23). The benefits of CSR are many including gaining competitive advantage, public
reputation, shareholders value, creation and management of company’s reputation, and reduction
of cost and risks. Although the benefits of CSR activities may not be realized immediately, they
mean a lot for the success and survival of an organization in future. In other words, something
that is done today to benefit the general public or the customers helps the company indirectly in
future (Trivedi &Stokols 2011, p. 47).
Risks and cost reduction
According to Masoud (2017) engaging in corporate social responsibility activities is one of the
effective ways of minimizing risks and reducing capital expenditures by an organization.
Typically, organizations work under pressure to meet the shareholders demands and this may
threaten the viability of an organization. In this case, CSR comes in to mitigate such threats by

CORPORATE SOCIAL RESPONSIBILITY AND ETHICS 4
ensuring a high level of environmental and social performance (Mahmoud, Blankson & Hinson
2017, p. 199). Some CSR activities that help a company reduce risk and cost and increase
shareholders value are producing products that are environmentally friendly and save energy.
Additionally, creating relationships with people and customers is also useful. At Origin
Company, the environment comes first and no single activity is operated that is supposed to
destroy the environment. The management at the group ensures that all the employees follow all
environmental regulations (Zhao, Chen & Xiong 2016, p. 135). The group protects the
environment because they believe that if their activities harm the environment, they are hurting
the whole generation. Such corporate activities directed towards the society wellbeing helps a
company avoid colliding with the authorities hence saving money that could have been used in
legal suits. Additionally, it helps the company attract more customers because people are
convinced that a company that cares about the environment cares for them also. As a result, the
company attracts more customers hence more profitability (Allen & Craig 2016, p. 229). These
small favors done to humanity attract more customers to a company and as a result, the risk and
cost of doing business are minimized. More customers mean increased profitability and more
value to the stakeholders.
Competitive advantage
Competition is one of the issues that have been threatening many businesses in the recent past.
Entry of new companies in an industry threatens the existence of the old one and if new ways of
surviving are not implemented, then there are those who will be forced to exit the market (Falk
&Settle 2011, p. 97). Managers have now realized that CSR is an effective strategy of
differentiating itself from the competitors. Different companies developed unique CSR
strategies that will set them apart from the competitors. CSR activities benefit a company in

CORPORATE SOCIAL RESPONSIBILITY AND ETHICS 5
many ways such as winning customer trust, getting government support, and also attracting
investors (Masoud 2017, p. 23). Apart from caring for the company, Origin group also work with
the community by supporting different groups. The company offers scholarships to the locals
both in education and the sport sector. Many people have been able to improve their living
standards especially those who are lucky to secure these scholarships (Rose 2017, p. 97). Caring
for the people within the business environment by bettering their lives means that in one way all
the other they will also be of benefit to the company in future. Basically, this is all what
corporate social responsibility is all about (Cavalieri 2007, p. 148). For example when people
acquire quality education, they come back to work for the company and they bring in new ideas
which help the company achieve its goals and objectives. Additionally, the company cares for
the safety and health of its employees, the community and the customers (Baden 2016, p. 132).
All these people matter at Origin group because without them the company would not be where
it is today. As a way of ensuring a healthy and safe environment Origin is committed to achieve
many things some which are listed below
 To provide all the necessary requirements for a healthy and safe environment
 To ensure that accidents which can be prevented do not occur a second time by
investigating the cause of an accident and taking the necessary measures
 To ensure that all employees are trained accordingly to ensure that they carry out their
duties effectively,
 Supervising employees and providing them with all equipment they require
 To take the appropriate measures to protect the environment and the members of the
public who may be harmed by its activities

CORPORATE SOCIAL RESPONSIBILITY AND ETHICS 6
Such CSR activities are attracts more customers which mean that the company will increase its
market share hence competitive advantage and more value to shareholders.
Reputation
No one would want to be associated with a company that does not operate according to the
values and laws practiced in the community where the business operates. A company that does
not contribute in any way towards the welfare of the community is not a successful one as far as
corporate social responsibility is concerned (Żychlewicz 2015, p. 65). Demonstrating the ability
to fit well in a society create long-term relationships with stakeholders. Customers, suppliers, and
employees want to be associated with an organization that is responsible and willing to
contribute to the society. Practicing CSR is one way that is effective in creating a legitimate
company that has a good image to the public. At Origin Energy, they are committed to impacting
the lives of as many people as possible in Australia through influencing lives, protecting the
environment, and the public (Lim & Park 2018, p. 104). Customers, the public, and the
environment come first at original Energy and through this; the company have succeeded in
winning admiration from the customers and the society in general. CSR is an effective yet a
cheap strategy of taking a business to the next level because as the public benefits, the company
will also be benefiting (Shea & Hawn 2014, p. 26). Therefore it is a win-win situation for the
parties involved.
Objectives
To analyze the corporate social responsibility activities of Origin Energy company
To find out who benefits from the CSR initiatives

CORPORATE SOCIAL RESPONSIBILITY AND ETHICS 7
To demonstrate why companies need to develop CSR activities
To evaluate the importance of CSR in organizations
Methodology
Both qualitative research and qualitative research methods were used in this report. The
qualitative study aims to answer the question why and how a decision was made by gathering in-
depth information about behaviors of the parties involved. On the other hand, quantitative
research is used to quantify a problem using numerical data. By using the two research methods,
this report examined the available information about the CSR activities of Origin Energy and
what the company has achieved from these activities. Interviews were conducted with some of
the company’s management team, employees and the local residents of New York City.
Questionnaires were also used in this study whereby respondents were supposed to answer a few
questions concerning how they have benefited from the company. To conduct interview with the
mentioned parties, consent was obtained from the relevant authorities who were contacted
through a phone call. Random sample methods were used to analyze data obtained in this
research to ensure that the results are more accurate and the sample size was 30 people.
Findings
Based on the data obtained from the research, it is evident that CSR is not only beneficial to the
people involved but to stakeholders and the company as well. CSR is an initiative that has many
benefits and effective in ensuring that a company achieves its goals and objectives without
compromising the stakeholder’s interests. Giving back to the society is two-way traffic which
benefits all the parties that are involved.

CORPORATE SOCIAL RESPONSIBILITY AND ETHICS 8
Recommendations
It is recommended that companies should support the local community through beyond
participating in local events. By supporting, it means marking local purchases whenever possible
to promote other businesses in the locality. The management should come up with plans on how
an organization is going to be socially responsible. CSR comes from the top and then passed on
to the rest employees on an organization. It would be appropriate that companies develop
socially responsible programs because it is one of the effective ways of improving a company’s
performance and profitability. It would also be advisable to always encourage employees to
generate new ideas that will encourage social responsibility
Conclusion
Every company needs to develop a strategy that will incorporate corporate social responsibility.
In the current competitive market, companies need to use unique ways that will meet the
stakeholder’s interests and at the same time give back to the community. CSR is a simple way
that is supposed to ensure that a company has long-term relationship with customers, suppliers,
and the general public who are the key contributors to business success. CSR does not only
benefit the community but also the company itself and the stakeholders. Despite the fact that
these benefits are not realized immediately, they mean a lot for the future business operations.
Just like Origin group cares for the environment, its employees and the public, other companies
should also do the same.
Appendices
Many factors need to be put into consideration to achieve an effective and successful corporate
social responsibility initiative. They include and not limited to encouraging innovation, creating

CORPORATE SOCIAL RESPONSIBILITY AND ETHICS 9
partnerships, giving people a reason to believe, and developing a plan and a vision. If these
factors are checked, then a company is set to achieve success using this CSR strategy

CORPORATE SOCIAL RESPONSIBILITY AND ETHICS 10
References
Allen, M. and Craig, C. 2016. Rethinking corporate social responsibility in the age of climate
change: a communication perspective. International Journal of Corporate Social Responsibility,
1(1).
Baden, D. 2016. A reconstruction of Carroll’s pyramid of corporate social responsibility for the
21st century. International Journal of Corporate Social Responsibility, 1(1).
Cavalieri, E. 2007. Ethics and Corporate Social Responsibility. Symphonya. Emerging Issues in
Management, (2).
Falk, J. and Settle, D. 2011. Australia: Approaching an energy crossroads. Energy Policy,
39(11), pp.6804-6813.
Kulshrestha, S. and Padiya, Z. 2011. Business Ethics and Corporate Social Responsibility. Indian
Journal of Applied Research, 3(5), pp.422-423.
Lim, S. and Park, B. 2018. An Analysis of the Relationship between the CSR activities of Public
Enterprise and Social Reliability: Focusing on Authenticity and Appropriateness of the CSR
Activities of Public Enterprise. The Korean Journal of Local Government Studies, 21(4), pp.411-
435.
Mahmoud, M., Blankson, C. and Hinson, R. 2017. Market orientation and corporate social
responsibility: towards an integrated conceptual framework. International Journal of Corporate
Social Responsibility, 2(1).

CORPORATE SOCIAL RESPONSIBILITY AND ETHICS 11
Masoud, N. 2017. How to win the battle of ideas in corporate social responsibility: the
International Pyramid Model of CSR. International Journal of Corporate Social Responsibility,
2(1).
Ross, D. 2017. A research-informed model for corporate social responsibility: towards
accountability to impacted stakeholders. International Journal of Corporate Social
Responsibility, 2(1).
Shaukat, A., Qiu, Y. and Trojanowski, G. 2015. Board Attributes, Corporate Social
Responsibility Strategy, and Corporate Environmental and Social Performance. Journal of
Business Ethics, 135(3), pp.569-585.
Shea, C. and Hawn, O. 2014. Social Perception of Corporate Social Responsibility and
Irresponsibility: Asymmetric Benefits and Penalties of CSR Strategy. SSRN Electronic Journal.
Trivedi, C. and Stokols, D. 2011. Social Enterprises and Corporate Enterprises. The Journal of
Entrepreneurship, 20(1), pp.1-32.
Trong Tuan, L. 2012. Corporate social responsibility, ethics, and corporate governance. Social
Responsibility Journal, 8(4), pp.547-560.
Verma, S. and Prakash, U. 2011. Corporate Governance: Business Ethics and Social
Responsibility. SSRN Electronic Journal.
Zhao, X., Chen, S. and Xiong, C. 2016. Organizational attention to corporate social
responsibility and corporate social performance: the moderating effects of corporate governance.
Business Ethics: A European Review, 25(4), pp.386-399.

CORPORATE SOCIAL RESPONSIBILITY AND ETHICS 12
Żychlewicz, M. 2015. Corporate benefits of CSR activities. Journal of Corporate Responsibility
and Leadership, 1(1), p.85.