Corporate Social Responsibility: Business Report Analysis

This report provides a comprehensive overview of Corporate Social Responsibility (CSR), examining its core themes, including environmental efforts, philanthropy, ethical labor practices, and volunteering. It defines CSR, differentiates it from business ethics and sustainability, and analyzes its current status in the UK compared to other countries, such as China. The report explores how CSR fits into business models and stakeholder relationships, outlining the advantages and disadvantages for both companies and the general public. It also investigates the impact of CSR on marketing strategies, company reputation, performance, and profitability, along with the driving forces and hindrances for companies adopting CSR practices. The report utilizes illustrations to clarify concepts and provide a well-structured analysis of CSR's multifaceted role in modern business practices.

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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
Discuss the main themes of Corporate Social Responsibility (CSR)..............................................2
What is corporate social responsibility (CSR), and how does it compare to the concepts of
business ethics and sustainability?.........................................................................................2
What is the current status of CSR in the UK, and how does it compare to other countries?. 6
How does CSR fit into models of a business and its relationships with its stakeholders?.....8
The main advantages and disadvantages of CSR for companies and for the general public. 8
The effects of CSR on a company’s marketing strategies, reputation and overall public
perceptions..............................................................................................................................9
The implications of CSR on company performance, and how CSR fits into considerations of
profitability...........................................................................................................................10
What are the driving forces for companies to take more CSR?...........................................12
What are the hindrances for companies to take more CSR?................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17
ILLUSTRATION INDEX
Illustration 1: Constituents of CSR..................................................................................................3
Illustration 2: Type of CSR activities..............................................................................................4
Illustration 3: Comparison of CSR with the concept of business ethics and sustainability.............5
Illustration 4: Key drivers of CSR in China.....................................................................................7

INTRODUCTION
Corporate social responsibility (CSR) is evident to bestow a professional outlook to
today's business organisations. It is where they are hereby apparent to involve into such effective
practices practices that reflects a prompt initiative towards benefiting the entire society. The CSR
activities conducted by the business's are required to encompass a wider set of tactics. This often
includes investing a fundamental portion of the company's funds to proceed into charity as a way
of implementing more greener functions in business. These CSR activities are broadly divided
into distinct categories of social accountability. Wherein, these practises can be enforced in four
coherent ways that are known as environmental efforts, philanthropy, ethical labour practices and
volunteering.
It is however on discoursing upon a foremost existence of environmental efforts with a
principle focus of CSR is on the environment. This is for instance to protect the surrounding by
using certain eco-friendly measures as a way of defending the environment in an effective way.
This in turn is evident to create a positive impact on the carried perception of the clients and
users affiliated with the organisations by together enhancing their brand image in the convergent
marketplace. It is where most of the businesses irrespective of their factual size have an ample
carbon footmark. It is where any undertaken step for reducing these carbon footmarks are well
reasoned to play a considerable role for both the organisation and the society as well.

Another tact of CSR in the field of philanthropy is where the businesses are proven to
practice such social responsibilities that postulates them to make donations and charities in
pertinent places where they are together having several other resources as a way of making
charities, etc. Ethical labour practices is yet another tact of CSR where the companies are hereby
required to treat their employees in a fair and ethical manner as a way of demonstrating their
CSR. It is with a special context of those businesses who are actively operating in the
international markets and are thus required to follow distinct labour laws that largely differs from
their domestic market. Volunteering being another foremost constituent of CSR postulate the
ventures to attend certain volunteer events as a way of depicting their sincerity towards
benefiting the society. It is by participating into considerable activities without demanding
something in return is referred to be the best way in which the organisations can explicit their
concerns towards the issues prevailing in the society. The below report has discussed about a
similar composition of CSR by referring to its distinctly framed themes.
Discuss the main themes of Corporate Social Responsibility (CSR)
What is corporate social responsibility (CSR), and how does it compare to the concepts of
business ethics and sustainability?
The Corporate social responsibility is a form of a business model incorporated with
corporate self regulation. It is concerned with the business methodology which benefits the
society. Corporate social responsibility is also popularly known as corporate citizenship,
corporate conscience or responsible business. Policies of CSR follows the mechanism of self
regulation. Self regulation mechanism is the one in which a business observes and guarantees
that it will abide by the laws, ethics and national as well as international guidelines and
regulations (Crane and Matten, 2016). It gained popularity in the 1960's and even today
arbitrarily used by many businessmen for shrouding many legal responsibilities and moralities.
It mainly focuses on stakeholders to include economic aid and volunteering. The definition of
corporate social responsibility as given by Business Dictionary is as follows- “A company’s
sense of responsibility towards the community and environment (both ecological and social) in
which it operates. Companies express this citizenship through their waste and pollution reduction
processes, by contributing educational and social programs and by earning adequate returns on
the employed resources.” Categories of corporate social responsibility are-

 Environmental Efforts- No matter what the business size is they need to focus and take
steps for the carbon emission which would benefit the company as well as the
environment. Philanthropy- Practice of social responsibility can be done by charities may be national
or international as they have a lot of resources to do so (Mason and Simmons, 2014).
 Ethical Labour Practices- Companies can also exhibit their corporate social
responsibilities by addressing their employees even handedly and ethically. This will
create a feeling of equality and will help to unite the employees so that there are no
conflicts and an efficient team could be made to make the best use of individual
potentials.
Illustration 1: Constituents of CSR
(Source: )

Corporate social responsibility helps a company to complete its mission and acts like a
guide so that the company can effectively represent to its customers. Strategies of CSR motivates
a company to create an optimistic blow to the atmosphere and to the stakeholders which includes
customers, communities, workers, lenders and other (Grant, 2016). A CSR perception aids a
company to make long term profits. Charity one of the best CSR activity to gain trust, loyalty
and a positive response from the consumers.
It is on comparing the CSR with two aligned concepts of business ethics and
sustainability, it has been found that though corporate social responsibility and business ethics
and sustainability looks quite corresponding but they carry dissimilarity amongst them. The
difference lies in their vision. Business ethics are the morals and principles to choose a correct
path. It involves the different aspects of the business such as methodology, production, and the
relation with its customers. It focuses on correct functionality of business including each and
Illustration 2: Type of CSR activities
(Source: )

everything in right way (Cha, Yi and Bagozzi, 2016). Business ethics are the morals and
corporate social responsibility is a duty towards the society and environment. These can be
excellence, unity, responsibility etc. Sustainability in a business includes long lasting of the
economic functionalities, responsibilities towards environment, benefits to the society. It's about
preserving the lifestyle and resources for the use of future generation. Ethics and sustainability
deals with not only with social duties but also with the responsibilities of the business towards its
employees, consumers, suppliers and rivalries. Corporate social responsibility deals with the
level that the company owns to the society.
Corporate social responsibility is the way to do business where it does not harm the
society and environment and preferably benefits the surroundings and social system whereas
Illustration 3: Comparison of CSR with the concept of business ethics
and sustainability
(Source: )

business sustainability is a capability of a company to make an outlasting future as well as to
endure the present owners. CSR is a responsibility of a business to function ethically and ponder
their impact on environment and society (Saeidi and et. al., 2015). On the other hand
sustainability is conserving and consuming the resources in a way to get a long term and
maximum benefit. Corporate social responsibility makes a backward approach to the business
performance and sustainability makes a forth approach. The difference between business ethics
and sustainability and CSR can be understood with an example that selling of tobacco, alcohol,
cigarettes, etc. are not against business ethics but it is against the principles of corporate social
responsibility.
What is the current status of CSR in the UK, and how does it compare to other countries?
Progressively, CSR is envisioned to be a best practice adopted by both City and their
government with a greater role of UK as well. It is where there exists some key drivers of CSR
that are responsible to create a prior sense of being socially accountable in nature (Goyal, 2013).
These principle factors are however with an aligned set of varied factors that involves a foremost
consideration of referring to the factual preferences of the consumers with an enumerated ratio of
62%. Another key driving force of CSR in UK is recruitment and retention of staff members at
the rate of 49% and 48% cost management. There together exists other two leading forces with
44% of public attitude and brand building and 40% of right things to do.

It is on comparing the key drivers of yet another country such as China, it has been found
that China is depicted to have similar driving forces with a distinct proportion of each. In context
to which, a foremost impulsive force in the CSR activities of China showcases 67% of cost
management and 64% of customer demand. However, yet another constituent of right thing to do
is at a proportionate ration of 62% and brand building at 59%. Apart from which, 58% of staff
retention and recruitment has been analysed over here with 42% of tax relief measures.
Although, on referring to the practices that are mostly adopted by both the nations, some
correspondent activities have been depicted over here where most of the organisations in both the
countries are likely to donate funds for varied community causes in the form of charity. This has
depicted around 68% charity with 65% participation in charity assemblage and an equivalent
ration in improving energy efficiency and waste management. In addition to which, 53%
donation of goods and services to charitable enterprises have been envisioned with 39% change
in the existent manufacturing procedure as a way of reducing any of their negative environmental
Illustration 4: Key drivers of CSR in China.
(Source: )

impact. Lastly, 31% of carbon footprint reduction has together been acknowledged by the
respective organisations of both the nations.
How does CSR fit into models of a business and its relationships with its stakeholders?
The main advantages and disadvantages of CSR for companies and for the general public
Corporate Social Responsibility refers to the business benefiting the environment and
society than making an economical benefit (Delmas, Etzion and Nairn-Birch, 2013). Some
advantages of CSR for both companies and general public are as follows:
 They help an organisation to accomplish new business. As they create an optimistic
impact of the company in the market as well as in the society.
 They help in the confinement of an organisation's customers as they retain the belief of
customers for the company.
 They flourish and strengthens the relationship of the company with its customers, with
the suppliers, and its networks (Skard and Thorbjørnsen, 2014).
 CSR helps to differentiate the company from its rivalries.
 They fascinate the customers and helps to retain them keeping a positive and jolly
environment at the workplace and build a happy workforce.
 Creativity and learning is generated also reputation and influence of the company is
enhanced.
 They also help in saving the money on energy, on cost of operation.
 They aid in management of risk (Miras‐Rodríguez, Carrasco‐Gallego and Escobar‐Pérez,
2015).
 They add to the enhancement of the prestige and trustworthiness of the company.
 They bring media opportunity as media always covers every news of social activities and
ethical business activities.
 It helps to be employer of choice.
 CSR activities includes charities which is a very big advantage for the public as the
needed persons gets help.
 Many if its activities involve environmental conservations and social initiatives which
brings awareness and realisation among people (Poplawska, Labib and Reed, 2015).
 Public gains trust and belief and trust for the company

However, there together exists certain disadvantages on both the above referred bodies that are
as follow-
 Corporate social responsibilities have programs and activities which requires a lot of
expenditure. This results in the increase cost of production for the company. Large scale
business can manage the increase but small scale business are not able to cope up with
the increase (Doh and Tashman, 2014). The consequences of this is that ultimately the
cost of a product or service is raised due to increase in cost of production which
eventually has to be paid by its customers.
 According to CSR policy if the organisations are found disrupting the CSR programme
than they have to reveal even the drawbacks of their own product. This results in
breaking of the trust of the customers. For instance a mobile company after having sold
the model calls back their phones in large numbers if they found any kind of defect in the
model. This creates annoyance in the customer and their trust in the company breaks.
 There are times when a CSR activities takes time to get results. In such cases customers
start thinking that the company which they have trusted has fooled them the CSR activity
was nothing but PR stunt (Bachmann and Ingenhoff, 2016). Then it becomes difficult for
the company to persuade the public.
 There may be a possibility that a company focuses on a CSR activity so much that it fails
to remember about the bonds and commitments they have made to their shareholders that
they have to profit them too.
The effects of CSR on a company’s marketing strategies, reputation and overall public
perceptions
This section is specially to identify some prominent role of CSR on the marketing activity
of companies that in turn impacts upon their built in reputation by together influencing the
carried perceptions of their public, either in an optimistic or pessimistic manner. CSR activities
are nowadays having a compulsive existence in almost all business organisations. It is where a
large number of establishments are continually involving several social activities in their regular
business practices. In context to which, it is together referred to be an ultimate tool of marketing
for most of the business associations as a way of increasing their reputation in the market and
boost up a profitable sale. It is with a greater sense of today's population where they also carries
a proficient outlook towards such undertaken measures of the organisations and are therefore

affected by their CSR activities as well. It is where an effective implementation of CSR largely
supports the organisations to encourage both employee and customer engagement by which the
companies can go a long way of success.
It is with a foremost constituent of marketing strategies that are liable to impact by an
enforced tact of CSR where it duly promotes a prior sense of innovation with an improved
product or business models. It is on depicting some common formulations that are developed to
in terms of packaging the goods in a friendly manner by sourcing it locally. Both these
approaches are evident to make a significant reduction in the overall disbursement of a
commodity by including the cost of its transportation. These methods are in turn apparent to
benefit the environment with a decreased carbon footprint of the firm by drastically altering its
profit margins as well. Wherein, on considering yet another consent of firm's reputation in the
market with enforced strategies of CSR, they are together evident to give certain long term
benefits to the entities. This in turn enhances the sustainability of the company with a prolonging
success and long term viability.
It however postulates them to maintain a considerable relationship with all organisational
stakeholders as a way of increasing the valuation of the entity. Both these factors are in turn
proven to effect the carried perception of the consumers with a greater sense of engagement. It is
where an incorporated act of CSR into the applied model of business entails a newer mechanism
for reaching out the public in newer ways. These are the ways in which the people tends to talk
and share more with one another for an ultimate outcome of more consumption. This requires the
enterprises to undertake a representation of certain ethical practices like a prolonging
procurement of resources by treating the workers in a fair manner. It is by together adopting
some defined practices of being charitable as a way of fetching a liable interest of public to
recognize and appreciate the praiseworthy work policies adopted by the establishments as a way
of fulling their CSR.
The implications of CSR on company performance, and how CSR fits into considerations of
profitability
Measurement of company's performance has changed a lot over the years. Earlier the
performance of a company used to be a quantitative analysis of the company. This included
company's turnover, its liquidity, return of capital employment, profitability, return on equity etc.
But after twentieth century performance of the company started being more qualitative