Critically Assessing Key Drivers of Corporate Social Responsibility

This essay provides a comprehensive analysis of the key drivers behind Corporate Social Responsibility (CSR), emphasizing the increasing importance of ethical consumerism, brand reputation, and sustainability. It explores how consumer demands for green products and ethical business practices are compelling companies to adopt more environmentally friendly and socially responsible approaches. The essay critically assesses the evidence supporting these drivers, highlighting examples such as Walmart's Project Gigaton and contrasting them with cases of greenwashing like Volkswagen's emission scandal. Ultimately, the analysis underscores the evolving role of CSR in shaping corporate strategy and enhancing brand image in a world increasingly conscious of environmental and social issues. Desklib offers a wealth of similar essays and study resources for students.

Running head: CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility
Name of the Student
Name of the University
Author note

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Corporate Social responsibility (CSR) is one of the most important aspects that every
corporate and business house needs to take into consideration (Searcy 2017). In the opinion
of Schwartz (2017), the idea behind CSR is to make sure that the organization has some
positive influence in the society and it caters to certain needs of the society that needs moral
action. In other words, the concept of CSR can be defined as the “positive steps an
organization takes in the way it functions, to give benefits to the community, and ways in
which it can return to the community from which it has taken so much to get itself
established”. Furthermore, in the opinion of other scholars “CSR is now internationally used
tool to measure and compare the firm's performances economically, socially and
environmentally”. Therefore, it can be said that the basic premise of the concept of the
“corporate social responsibility” is to create a “sustainable business organization” which
benefits not only the market and the business organization concerned but the community or
the planet as well (Ji, Gunasekaran and Yang 2014). In the present times, the focus of the
majority of the nations has shifter just from making profits to providing benefits to the
society and the planet as a whole from which it takes so much (Ji, Gunasekaran and Yang
2014). The moral action of an organization largely creates the image of an organization in the
global domain (Ji, Gunasekaran and Yang 2014). It is believed that every organization must
have certain obligations towards the society and hence must plan actions accordingly (Lin,
Tan and Geng, 2013). The world is constantly at threat due to the high emission of carbon
and related pollutions that harm the environment and threaten the sustainable approach that is
being undertaken (Benjaafar, Li and Daskin 2013). It is essential for the organizations to
make sure that every approach taken by them for the process of production and
manufacturing does not impact the environment in a negative manner (Makanyeza, 2015).
The responsibility of the organization needs to be directed towards the sustainable nature of
the entire work process so that the environmental issues are kept in mind (Crane, Matten and

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Spence 2013). It is a reflection of this more than 64% of the CEOs of the various business
organizations are now investing more of the CSR aspect of their business (HuffPost 2018).
The company Lego taking into consideration this aspect has drastically improved their CSR
policies and it is a reflection of this they have been rated as the best company in the world
with the most positive CSR with an impressive rating of “74.4 RepTrak points” (Forbes.com
2018). The aim of this report is to emphasize on the various drivers of CSR that an
organization has to keep in mind such as consumer relationships and brand reputation, which
motivate organizations to practice environmental or greener methods to improve company’s
reputation and corporate sustainability.
In the opinion of “Josiah Charles Stamp, 1880-1941, former director of the Bank of
England”, “It is easy to dodge our responsibilities, but we cannot dodge the consequences of
dodging our responsibilities”. Therefore, the various business organizations instead of
dogging their responsibilities towards the society as well as the planet should focus on their
responsibilities (Ji, Gunasekaran and Yang 2014). It has been assumed by several people that
CSR activities are solely a deliberation for established businesses. One of the key drivers of
CSR can be regarded the rising advancement of the concept of ‘ethical consumerism’,
whereby customers have been making decision based on the probabilities of ethics and
principles in the business processes (Visser 2016). Ethical consumerism signifies that
consumers have been increasingly revealing their inclinations towards knowing the
whereabouts of the products and if they have been distributed in an ethical manner (Visser
2016). It must be noted that the evolution of ethical consumerism has resulted in an immense
growth of accountable and effective decision-making processes in the global market for
decent and ethical products as well as services. However, the UK Co-operative Bank has
defined this ethical business process and further included green products, ethical beverages,
eco-travelling along with ethical personal goods and green investment (Visser 2016).

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Consumers in contemporary businesses play a significant role in acknowledging as well as
adopting and further enhancing their level of responsibility and ethical practices (Coppa and
Sriramesh 2013). The concept of ethical consumerism has led customers to gain more
awareness and further demand clarity and accountability across the business operations.
However, it must be noted that in this era of high-level visibility of ethical consumerism and
rising rate of interest in moral behavior investigation, there lies certain level of ambiguity and
uncertainty towards the factors that drive consumers to purchase ethical goods and products
(Vinerean et al. 2013). It has been witnessed that consumers support specific brands because
of the achieved advantages derived from the CSR activities Furthermore, a direct gain can
take place through the varied perceptions of equality and parity of the strategies related to the
prices set by the organizations (Vinerean et al. 2013). There are not sufficient data to identify
the proportion of consumers who are seeking to obtain a reasonable price and the ones who
are regarded as ‘socially accountable’ purchasers.
The demand and need for green marketing is constantly on the rise as it the
responsibility of an organization to make sure sustainability is maintained in the environment
and the consumer needs are also met (Makanyeza, 2015). The consumers have a growing
demand for greener products as they realize the need to ensure that the environment is not
harmed in any means. Several companies like Murray, has been seeking to increase the
proportion of green products that have been demanded by consumers. These customers have
further been reinforcing and demanding corporations to create an increased rate of
environmental friendly products. This will facilitate the process of diminishing the rate of
carbon footprints and behavior towards the employees (Skard and Thorbjørnsen, 2014). The
green products are the future of the marketing world and hence it is essential that the
companies involve themselves in green marketing practices (Lin, Tan and Geng, 2013).

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Project Gigaton of Walmart that takes the oath to reduce 1 billion tones of Green
house gases, such a project from the leading organization shows that there is a need and
rising demand for the organizations to go green and it has been realized by the leader in the
market (News.walmart.com 2018). Walmart says in their official statement that they wish to
reduce the emission level and if successful then it shall be equivalent to removal of 211
million passengers from the streets of U.S. They aim to achieve the target by 2030 (Searcy,
2017). Walmart is also a part of the RE100 initiative, which is taken up by various leading
businesses to make sure that they completely avoid the use of non renewable source of
energy (Graichen et al. 2016). Such approaches by the company increases its image in the
overall public a feeling of brand loyalty is thus attached with them. The supply chain going
green for the Walmart will further make sure that they completely remove all the carbon
emission of the company and embrace a greener approach (Ji, Gunasekaran and Yang, 2014).
The consumer demand has been the greener approach so a company like Walmart
successfully combines their CSR approach with the consumer demand and this shall allow a
greater growth of the company in the market.
When a company caters to the needs and approaches of the consumer, it is evident,
that the consumers shall be loyal to the organization and gain trust on the company. The
survey that has been evaluated in the article of Makanyeza found that during the random
interception of customers at major superstores, customer knowledge and awareness have
great impact of consumer ethnocentrism (Makanyeza, 2015). However, the author explicitly
revealed the negative influence of consumer ethnocentrism on aspects related to consumer
loyalty. It must be noted that this intense demand of cultural ethnocentrism and consumer
consciousness have led few marketers indulge into unethical and aggressive endorsements of
products to improve their brand image and recognition (Makanyeza, 2015). Walmart is a fine
example and hence it is seen that the greener approach led to the more consumers and also a

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huger competitive advantage. The policies made sure that the organization was different from
other in the industry and hence such an approach allowed them to gain huge competitive
advantage. The company has revealed that its carbon emissions in terms of sales percentage
has witnessed considerable decline. It further received Aspen Institute Energy and
Environment recognition for encouraging corporate energy efficiency. The company further
has acknowledged and invested in sustainable energy by aiding millions in renewable sources
of power in order to reduce green house gas effluence (Makanyeza, 2015). However, the
recent scandal in which the company Volkswagen was involved on the score of the “defeat
devices” used by them to manipulate the emission rate of the vehicles manufactured by them
reflects the impact of not following the various CSR policies of the business world. It is
significant to note that the company fined more than £6.3 billion pounds in the various
countries of the world because of the unethical practices followed by them (Knapton 2018).
The brands need to constantly market themselves in a way that enhances the brand
reputation. The prime objective of the branding and communication departments remains to
make sure that the brand enjoys good image in the market and people consider the brand as
a trusted one (Skard and Thorbjørnsen, 2014). The practice of greener supply chain and
production methods make sure that the organization keeps developing a pro-environmental
image in the market in which it is catering to. The consumer demands need to be met by
every brand and it is the responsibility of the organizations to make sure that the best of the
services are provided to the brands (Tinne, 2013). The pursuance of CSR that has a far
reaching impact on the overall scenario that is prevalent in the world ensures that the image
of the brand is heightened in the public. However, at times it is seen that organizations
indulge into practicing green washing techniques. Green washing refers to the deceptive
practice of the companies to display their activities as environmental oriented but in reality, it
is actually not (Tinne, 2013). Walmart has not used green washing in their CSR approach and

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their Project Gigaton is truly an effective project and subsequent steps are being taken to
make sure that the target of reducing the emission is achieved by the year 2030. – However,
there are companies who have implemented green washing such as General Electric (GE)
(Cox et al. 2013). A typical example of a business organization which used the concept of
“Green Washing” is the company Volkswagen (Knapton 2018).
The consumers in the recent times are aware of the impending crisis in the
environment and hence it has to be made sure that the various CSR campaigns are aligned
with the needs and demands of the organization. The consumers prefer to spend more money
on products and services that are green in their nature and add positively to the environment
(Biswas and Roy, 2016). It has been reported that a major section of Generation Z have
immense inclination towards companies which produce ethical and eco friendly goods and
services. There has been a rise from over 50% in 2014 to almost 75% of customers preferring
products that have positive influence in the environment (Forbes.com 2018).
If companies try to cover their wrongdoings by showing their non environment
practices as green approaches then people shall understand. When the customers come to
know about the practices as being false, they completely lose faith on the company
(Greenstone, Kopits and Wolverton, 2013). The misleading claim that an action is directed to
the betterment of the environment is something that shatters the faith of the people (Cox et al.
2013). The consumers are attached to a company and this attachment is removed completely
when the green washing practice comes out in the public (Krupp, 2017) .The consumers
prefer to buy products that are less harmful to the environment and they have considerably
become more socially responsible in their purchase pattern and behavior (Skard and
Thorbjørnsen, 2014) The consumers want the organizations to act responsibly towards the
duties that are assigned to them in terms of the aspect of CSR (Saeidi et al. 2015). There
have been instances where it is seen that companies have invested considerable of amount for

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the implementation of certain CSR campaigns that are oriented towards the development and
preservation of the environment Greenstone, Kopits and Wolverton, 2013). Walmart is an
organization that has taken certain steps for the betterment in their approach towards the CSR
campaigns (Kesavan, Bernacchi and Mascarenhas, 2013). The project Gigaton is a step that is
radical and ambitious in nature. The project shall make sure that the carbon emissions are
reduced and the supply chain of the company goes greener in its working process (Krupp,
2017). Walmart has confirmed that it is taking help form various non-governmental
organizations and the Environmental Defense Fund to make sure that the emission toolkit is
well designed and it works to achieve the desired target of emission. Around 80% of carbon
emission in the US is from the supply chains of various retailers and Walmart is considerably
one of the biggest units in it (Greenstone, Kopits and Wolverton, 2013). The decision to cut
down the emission on their part has been mainly to make sure that the impact and harm done
to the environment is reduced substantially. Citing the example of Walmart, PepsiCo has also
joined in making the environment more sustainable (Krupp, 2017). The company has
indulged into the practice of sustainable agriculture for its products so that the land use, water
resources and other aspects of environment are well taken care of by their approach. The
practice of Walmart needs to be highly appreciated because they have constantly kept their
motive fixed and all their CSR have been targeted to enhance the quality of the environment.
The PepsiCo has engaged more than 24000 farmers in their pursuance of sustainable
agriculture (Pepsico.com 2018). The agriculture that is being practiced by the company
makes sure that the least of the impact is left on the environment Makanyeza, 2015). The raw
material for the soft drinks giants used to create a huge impact on the overall land use and the
usage pattern of water and other raw materials. The sustainable agriculture has made it sure
that such practices are incorporated and the agriculture is done in such a way that the least of
the impacts is left on the environment. The farm animals that are an important part of the

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supply chain process are taken special care of by the PepsiCo (Biswas and Roy, 2016). The
company aims to make sure that the fertility of the land is not wasted and those involved in
the practice shall receive their due share in the process. The raw materials make for the
supply chain of an organization and it is seen that the various organizations leave huge
impact on the environment in the process. The supply chain management needs to be well
maintained for the organizations so that it leaves low impact on the resources base of the
environment and the carbon emission is reduced (Tinne, 2013). The carbon emissions acts as
a push away factor for the consumers as the customers do not want to get involved in
purchasing any product that has an extensive negative impact on the environment.
The consumer buying behavior is marked with an extreme sense of importance that
is given to the brand that is being purchased or invested in (Tinne, 2013). The performances
of the brands pave the way for them to be successful in the market. The quality of the product
and service that a brand provides creates the position of the brand in the market (Armstrong
et al. 2015). The trust of the consumers is not achieved in a single day and it takes
considerable time for the people to trust a brand. Repetition in the purchase of product from a
brand reflects that the brand is getting popular in the market and people are taking a liking to
it (Greenstone, Kopits and Wolverton, 2013). The brands need to understand the demands of
the consumers and act accordingly so that they can directly connect with the audience and
make a mark for themselves. The idea of evolving a brand image lies deep in understanding
the needs and demands that are present in the market. A thorough market research is required
in order to understand the needs of the market (Saeidi et al. 2015). The financial
performances of the brands hugely depend on the popularity of a brand in the market and the
way it is perceived by the people in the market. The financial growth of a company occurs
when people keep resorting to them for services and products and when they are found to be
ethical in all their approaches (Saeidi et al. 2015). The CSR plays a major role in making sure

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that the image of the company is kept in high regards in the market. The idea of CSR and its
proper implementations makes sure that the company is not making profits but also spending
in certain areas that is making the world a better place to live overall.
There are multiple reasons for a company to pursue a CSR campaign that is effective
and leaves imprints in the society. A CSR campaign brings with them various important
attributes for the organizations. The primary reason for which most of the business
organizations use the concept of the “corporate social responsibility” is to conduct their
business in the most ethical manner (Knapton 2018). In the present times, the planet as well
as the society forms a major area of interest of the various business organizations. It is often
seen that the various business organizations often take the help of unethical practices to
enhance their profits and thereby end up causing damage to the planet. A typical example of
this is the recent business scandal of Volkswagen and their “defeat devise” (Knapton 2018).
Therefore, the various business organizations design their CSR policies in a bid to provide
the maximum amount of benefit to the planet and the society. Another reason for the perusal
of the CSR is the concept of the “enhancement of the brand image” (Knapton 2018). It is
significant to note that in the present times the customers have become ethically more
conscious and like to opt for the services or the products of a business organization with an
ethically sound reputation. Therefore, it becomes paramount for the various business
organizations to maintain a sound CSR policy. Moreover, according to a survey conducted by
“Mr. Doug Miller” in the year 1999 reveals that “The dying role of the state is an another
driver or CSR because of the diminishing participation of the state, the stakeholders are
benefiting and their exceptions are rising”. Furthermore, according to another survey
conducted in the year 2002 by “Ernst and Young” reveals that “about 94% of companies
believe in CSR. It influences about 70% of all consumers and their purchasing decisions”

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(Knapton 2018). These in short are some of the major reasons for the perusal of the CSR
policies by the various business organizations.
To conclude, it is important for organizations to have an approach that caters to the
needs of the environment and society. The CSR campaigns lead the company to take up the
responsibility towards the society in which it is situated. The main idea behind the CSR
campaigns remains the fact that the companies need to think of ways in which they can
benefit the environment. Given the present scenario of the world where environmental issues
are always soaring high it is essential that the companies take up green initiatives to make
sure that the impact they leave on the environment is positive. The environment needs care
and attention from the organizations in order to sustain. Practice of sustainable development
has t be incorporated in the organizations and that can only done by making sure that the CSR
campaign is aligned in that specific direction. The supply chains of organizations lead to
putting huge impact on the environment and such an impact further damages the
environmental quality. CSR is a responsible behavior and should be practiced without any
manipulations. Global organizations such as PepsiCo and Walmart have successfully taken
up CSR steps that are leaving a positive impact on the environment. The consumer’s demand
for greener goods needs to be catered to and in the production of such materials it is expected
that the overall carbon emission shall subsequently come down.

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