Corporate Social Responsibility Theories and IKEA Case Study Essay

This essay provides a comprehensive overview of corporate social responsibility (CSR), defining it as a company's obligation to serve society. It explores the evolution of CSR from theory to management practices, emphasizing its role in enhancing a company's image. The essay delves into various CSR theories, including the triple bottom line and stakeholder theories, highlighting their connection to sustainability. Economic, social, and environmental sustainability are discussed in the context of the triple bottom line approach. The stakeholder's approach is also explained. The essay uses IKEA as a case study, analyzing its sustainable practices in home appliances. IKEA's commitment to sustainable suppliers, energy-efficient products, and lean production processes are examined to illustrate how CSR integrates with sustainability. The essay concludes by emphasizing the importance of integrating CSR and sustainability for long-term success, benefiting both society and the company.

ESSAY: CSR
As per Schermerhorn, CSR can be defined as the obligation for the companies to serve the
society at its best. Corporate social responsibility is topic that has been researched intensively
because of its popularity amongst the organisations these days. It is the concept that has
developed gradually from the theory to the actual management practices in the organisations. It
is involved in the management practices in order to enhance the image of the company. This is
the essay that argues about the various corporate social responsibility theories and their relation
with the concept of sustainability (Lindgreen & Swaen, 2010). Understanding the concept of
sustainability in CSR practices is also very important because it is one of the major reasons for
implementing CSR activities. Some of the theories that have been discussed in this essay are
triple bottom line theory and the theory of stakeholder’s. The company that has been used to
study the practices of CSR is IKEA which deals with home appliances and is considered as one
of the major companies that follow the CSR policies.
Corporate social responsibility has many forms. Any practice that the company conducts in order
to serve the society falls under the corporate social responsibility. It develops the situation where
not only the society gets the benefits but the company also get benefited in terms of enhanced
brand image. The major aim of the businesses is to earn revenue and also to serve the society at
the same time. This requires the company to engage in the practices that helps the society to
develop in return of the earnings they get from the society. Sustainability is one of the major
aspects of corporate social responsibility because being sustainable in its practices also helps the
company to contribute for the society’s good (Tai & Chuang, 2014). Sustainability is considered
as the need of hour and thus it is required by the companies to engage in the practices that are
sustainable by making their processes sustainable in nature. It is the term that basically means the
practices that benefits the present generation but could not harm the environment for the sake of
the future generation. There are three major theories of corporate social responsibility such as
corporate social responsibility theory, stakeholder’s theory and triple bottom line theory. As the
concept of sustainability is considered, triple bottom line and stakeholder’s approach considered
sustainability and CSR as the integrated concept (Crowther, 2008). As per triple bottom line

theory, the leaders of the organisation not tabulate the results only in terms of economy but they
also consider the aspects of social realm and environment. According to this theory economic
sustainability is the sustainability that deals with long term profitability of the business rather
than short term benefits. Social sustainability deals with the practices by the organisations that
does not harm the sentiments of any of the community of the society and the last one the
environmental sustainability that deals with practicing the activities that least harm the resource
available in the environmental and making the process sustainable. All these there notion of
triple bottom line approach deals drives the business to conduct the activities that supports the
society’s benefits instead of becoming a money machine. Another theory is stakeholder’s
approach. As per this approach, there are many stakeholders of the company and thus they have
different expectations from the company (Przychodzeń & Przychodzeń, 2014). Considering the
expectations and requirements of all the stakeholders and making the policies in order to fulfil
the same is the responsibility of the company. This makes the company a responsible corporate.
Some of the major stakeholders of the company are shareholders, employees, customers,
suppliers and communities. All these have different needs and companies have to fulfil the same.
Shareholders want that the company should earn higher profits every time so that they get their
part while the employees want to get the handsome salary and good working environment at the
company (Crane & Matten, 2007). Customers may expect that the company should provide them
the quality products in affordable prices and communities wants the companies to invest for
some social causes. Most of the companies these days are collaborating with the NGO’s so that
they can do charity out of some percentage of their profits. This is used as the marketing strategy
by the companies to have a good brand name in the market. There are companies who are
performing their responsibilities very gracefully and supporting the society along with getting
high revenue benefits along with enhanced brand image (Dahlsrud, 2008). One of those
companies is IKEA. The below section clearly explains the practices of IKEA which makes it
responsible socially as well as sustainable in nature.
This is the company that operates in the industry of how and furniture appliances. Its processes
are very much sustainable in nature and one of its policies to deal with only the sustainable
supplier’s works into the benefits for the company. The company is very much known for its
sustainable practices that make it socially responsible (Málovics, Csigéné & Kraus, 2008). Most
if the products that the company launch in the market use very less energy as compared to other

products that are in competition. The company also provides these products in comparatively low
provide which makes the products affordable for all. Some of those products are LED lights,
energy efficient products of home and kitchen. All these products are considered as environment
friendly because they are using very less resources. As far as the process of the company is
considered, it has been analysed that it makes very less usage of energy in the prices of
manufacturing and using the stage of lean production that eliminates the unproductive activities
in the process (Andersen & Skjoett-Larsen, 2009). The strategy of recycling and reusing also
helps the firm to make effective use of the resources and the waste produced. One of the major
strategies that the company follows is dealing with the sustainable suppliers. The company is not
only making its own processes sustainable but helping the suppliers to make their process
sustainable in nature, and only dealing with the suppliers who have sustainable approach to
manufacture and work. This ultimately makes sustainable supply chain of the company.
All the strategies that have been used by the company are benefitting each and every
stakeholders of the company (Strand, 2009). Making the price low helps the customers to buy the
production affordable pieces and at the same time giving large profits to the company because of
economies of scale. This fulfils the responsibilities of the company towards shareholders as it has
the capability to provide great revenues and profits to the shareholders. As triple bottom line
approach is considered, it has been analysed that the products of IKEA are socially,
economically and environmentally sustainable and thus the company is following this approach
in its practices (Benn & Bolton, 2011). IKEA is serving the society and earning their profits at
the same time. This is reasons why the company is well known in the market and has its
competitive edge over other competitors in the market.
The clear evidence of sustainability and corporate social responsibility has been given in this say
with the study of IKEA. Examining the practices of IKEA helped in understanding the concepts
of sustainability and CSR along with their integration (Montiel, 2008). The company shows that
sustainability is the very integral part of CSR practices and managing both the aspect collectively
can help the firm to develop a situation where it can fulfil all its responsibilities along with
earning high amount of profits. It has been analysed integration the CSR practices and
sustainability develops a new ways for the companies to achieve success in terms of economy,
society and environment.

This essay determines that corporate social responsibility is the policy that not only helps the
society but making the organisations to have a competitive advantage in terms of brand image.
This is because if the company is doing enough for the society, society gives it back and it can
easily develop its image (Morhardt, 2010). Sustainability is shown as the most important part of
CSR. There are many theories that show the integration of sustainability and CSR approach such
as triple bottom-line and stakeholder’s theory which are discussed in this essay. IKEA is the
company that follows both the approaches in its practices and thus it considered as en of the most
sustainable companies. The company also engaged in many CSR activities that provides
company with a great brand image. All the stakeholders of the company have different demands
and companies have to develop the policies that include all the stakeholder’s benefits.

References:
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