Contemporary Developments: Red Cross External Environment and CSR

This report provides a comprehensive analysis of the British Red Cross Society, examining the external environmental influences impacting its operations, including political, legal, economic, socio-cultural, technological, and environmental factors. The report delves into the significance of Corporate Social Responsibility (CSR) and ethics in the organization's decision-making processes, highlighting key principles such as humanity and impartiality. It explores the impact of CSR and ethical considerations on the Red Cross's ability to respond to crises, and identifies areas where the organization can enhance its effectiveness. The analysis covers the legal obligations related to CSR activities, the influence of economic changes, and the role of technology and socio-cultural factors in shaping the Red Cross's activities. The report also underscores the importance of environmental factors and how the Red Cross addresses them. This report offers valuable insights into the challenges and opportunities faced by the Red Cross, providing a detailed overview of its operations and strategic considerations. The report also analyzes how ethical considerations influence its decision-making, with suggestions for improvement.

Contemporary Developments
in Business and Management

CONTENTS
Contents...........................................................................................................................................1
TASK 1............................................................................................................................................1
External Environment influences of Red Cross...............................................................................1
TASK 2............................................................................................................................................4
2 (i) Influence of CSR and ethics on decision making................................................................5
2 (ii) effectiveness of the organization’s response towards ethics and corporate social
responsibility................................................................................................................................7
2 (iii) Areas for improvement......................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

Red Cross society is the world third biggest charitable organisation. This institution works to
cater the needs of people in need. This humanitarian society has marked its presence in
approximately 188 nations and simultaneously carrying out its operations. In this assignment
working of British Red cross will be taken into consideration. It is a society looking to cater the
needs of people within the geographical boundaries of United Kingdom. This society began its
operations in the year 1870 and has registered under the society act. The efforts of the volunteers
working with this society are aimed to helping people irrespective of their colour, cast or
ethnicity.
TASK 1
External Environment influences of Red Cross
There is atmosphere surrounding an institution in which it carries out its operations.
Therefore a society has to consider the entire factor in a thorough manner so that policies and
decision can be formulated in best manner according to the circumstances. To facilitate a better
understanding of the operating environment this examination of factors in atmosphere is
conducted (Barnes, S. and Hunt, 2013). The brief analysis of factor is as follows:
Political and legal environment
This external environment factor takes into consideration the policies and legislation
formulated by the government to monitor and regulate activities of business corporations
(Sezhiyan, Page and Iskanius, 2011). Red Cross society is owned and managed by the royal
charter of the United Kingdom which means that they are supported by the government of the
country in carrying out their social activity. The political grounds are favourable for this
organisation as they do not have to pay taxes and carry any liabilities. The major reason for the
same is that this institution not does work for profits and amount which is garnered are again
used for societal causes. The government policies and factors have ensured that activities of this
organization are carried out in a smooth manner and purpose of existence is being served
(Broadbridge and Simpson, 2011). The government have time and again provided them with the
financial assistance so that they are able to carry out their humanitarian tasks. As it is a charitable
organisation most funds are generated through charity solely which further means that they have
to rely on other organisation as well for the purpose of functioning. During the formation of a
new government, it comes out with a financial plan to serve citizens of the country and this
society can provide them help in achieving the same targets by countering situations which
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require urgent attention. Therefore it can be ascertained that changes in the political environment
does not carry major influence on the working of this institution.
Whereas legal factor carries a major impact on business organisation impacts Red Cross
society in a minimalistic manner. The company law and legislation regulates the functioning of
business organisation who is working for profits are not relevant to the working of charitable
organisation. However Contract law does carry an influence on working of this corporation. This
law states that they have to maintain records of volunteers working with them and should have a
contract between the two. Therefore they have to assure that they possess adequate information
about its volunteers and suppliers such as job title, employment date, address hours and notice
period. There is a preparation of annual report in which management have to justify various
sources through which funds are generated and places where expenditures have been carried out.
The legal obligation to carry out CSR activities have helped this organisation in garnering
additional funds to carry out their operations (Scherer and Palazzo, 2011).
Economic Environment
Economic environment takes into consideration that affects the feature that affect the
flow of money in the market. When a business is operating in the market these factor tend to
redefine their decision making process in the most significant manner. The crucial impacts which
are covered under this external factor are the interest rates, taxes, inflation and income of
consumers. Sometimes these factors determine the fate business operating in the market. Red
Cross is a charitable organisation operating in the same environment does not influenced directly
by the changes introduced in the economic environment. When the economic changes introduced
are not favourable for the masses, complete non-profit sector experiences a decline in the
contribution received (Economic Recession Continues To Hit Nonprofits Hard, 2017). The
country recently exited from European Union has seen a political and economic disruption which
has resulted in decline of contribution to this institution by 30%. Such instances led these profit
oriented organisation fight for their survival which carries a direct impact on their CSR activities
and funds or grant making (Sadgrove, 2016). The corporate donations are one of the most crucial
funding which is availed by this society so a reduction in that will ultimately affect the operation
of this institution. The contribution by individuals and corporations since recession has been
significantly lower. People now desiring to contribute have been reluctant due to uncertainty of
market circumstances. Even after 10 years of recession, charitable organisation are facing a
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major scarcity of resources due to less or insignificant contribution through sources other than
government. The current situation of crisis can only be improved by incorporating changes in
financial circumstances of these corporations.
Socio-Cultural Environment
The factor in the socio-cultural environment which will be most favourable is the
education of residents of the country. The quality education will ensure that there is increased
participation in the activities of this organisation and simultaneously increasing number of
volunteers. More number of people means that more efficient and effectively humanitarian work
will be carried out within a nation. This external environment tries to understand the dynamics of
society and tries to utilise the same for the benefit of business (Budhwar and Debrah, 2013). It
undertakes various segments such as values, beliefs, sex, age and education of concerned pool of
members. The changes in terms of consumerism, attitude toward social causes and population
demographics can carry an impact on the functioning of non-profit sector. This charitable
organisation can anticipate increased number of contribution as there is more number of elder
people in the country.
It has been experienced that contribution by elder generation is comparatively higher than
that of younger generation. Therefore this factor of demographics has turned out to be favourable
for this society. This is because the average age in Britain is of 40 years which means more
financial support to the corporation. Therefore this institution to target more of elder women as
they are carry a bigger share when it comes to making contributions to non-profit sector. At the
same time if more people are visiting the country for job means bigger population to look after.
The recent changes in the structure of British population states that there will be lesser number of
people who will volunteer for the job as average population of the country comes in elder
segment.
Technological Environment
Technological factor also carries an impact on the functioning of functioning of Red Cross
society. This factor undertakes feature such as involvement and expenditure of the government in
research section and technological efforts and discoveries in the nation (Dar and Cooke, 2013).
Red Cross’s operations have been impacted in a positive manner with the evolution of
technology in the country. The social media platforms have helped this organisation to make
people more aware about their duties and responsibilities towards the society and have curtained
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made people more aware about existence of such institution. The people who wish to volunteer
can apply through online platforms in a convenient manner. An organisation can now reach to its
donor in a convenient manner and plead for charity and funds donations so that welfare works
can be carried out.
Environmental Factor
This refers to domain which is most emphasized by Red Cross society. The efforts of this
society are aimed to mitigate the impacts of climate which has definitely resulted out of the
improper functioning of Business Corporation while dealing with natural resources (Ritala,
Hurmelinna-Laukkanen and Nätti, 2012). The climate changes have claimed many lives of
innocents due to flood, droughts and variations in climate. It has becomes so intense that it now
poses a threat on the humanity. Such aggressive changes have led to increase of needs in
emergency situations. The displacement of people along with environmental degradation has
enforced this organisation to help government in mitigating the impacts of emergencies which
rose due to climate change. The areas which are covered under this approach are energy
consumption and waste disposal (De Vries and Huijsman, 2011). Therefore this organization
considers environment law prime and ensures that all organisations comply with the same. For
the organization itself it can be carried out by taking help from in-house audit which assists in
identifying areas which are to be improved by this institution so environment grounds are
secured.
TASK 2
The theme which has been opted for this report is corporate social responsibility and ethics.
In general terms corporate social responsibility is defined to be responsibility of a business
toward community and society in which operations are carried out (Griffin and Moorhead,
2011). In such approach an organisation carries out efforts to contribute more in the development
of society in a sustainable manner. A CSR activity by an institution aims to benefit their major
stakeholder which encompasses management, employees, shareholders and community. Red
Cross society is a charitable organization and directs its efforts for helping an organisation in
times of need. It is a broad term therefore can be carried out through numerous measures such as
human rights, community development, health and safety and economic development.
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Ethics are defined to be purpose of existence of an organisation. Ethics lay down the
principles which govern behaviour of an individual as well as of organisation (Sheng, Zhou and
Li, 2011). The principles help in determining what is right and wrong for the institution. The
most common example of the same is employment of child labour which is not right. It is not
easy for an organization to determine its principles as they determine its future along with
relations with stakeholders. Both CSR and ethics are a crucial determinant of decision which are
undertaken by the organization. This decision is taken keeping in mind what business thinks is
fair and inviting welfare to the stakeholders.
2 (i) Influence of CSR and ethics on decision making
There are principles which are laid down by the Red Cross Society which help in mobilising
human capabilities in arising out of a situation of a crisis. The major principles and their impact
decision making are mentioned below.
Humanity: This is referred to first and most important feature which determine the
behaviour of people working in this organization. It refers to a feeling of compassion in
volunteers. The compassion people go out of their way to help people in need in their difficult
times. A compassionate individual will always show sensitivity to the physical, mental or
emotional sufferings of another (Holzmann, 2013). This is one of the core principles which have
been governing behaviour of volunteers since its introduction in the year 1870. The Red Cross
society worldwide carries this desire to help people out in their times of need irrespective of their
origin or social class. This principle carries a significant impact on the decision making as they
believe it is right to help someone who needs immediate attention rather than the one who has
been relatively closer to this institution.
Impartiality: This principle states that everyone is born equal and there is no difference
in humans of this mankind. The another principle which guides the behaviour of volunteer states
that there should be impartial treatment which is to be provided to individuals, a volunteer under
no circumstances should discriminate among two individuals on the basis of nationality, race,
status or political opinion he/she must perceive everyone equal. Within his capacity he should try
to eliminate suffering of an individual irrespective of race of colour of an individual. This
situation will help in spreading togetherness among humans. This principle also carries as direct
impact on the decision making as the choices complying with this principle are objective rather
than relying on the impartial grounds (Kolk, 2016).
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Neutrality: This is third and crucial principle which states that a volunteer must adopt a
neutral approach when it comes to situations of conflict. Another word which can help in
understanding neutrality is unbiased approach in terms of physical and ideological manner. This
principle is crucial as there are conflicts which are happening at regular level be it for natural
resources of share of land or egotistic. Under such circumstances a volunteer have to opt for
neutrality so that purpose of existence is served i.e. helping people in times of crisis. A volunteer
working with this organisation must not engage him in any controversies and hostilities as it may
distract him from fulfilling his obligation or duty with this institution. This principle affects
decision making, no matter the circumstances are a volunteer will always keep his duties
supreme without opting for a side or engaging self in the conflict.
Independence: It is a royal charter which means it is an independent association of
people who are later registered with the government (Law, Buhalis and Cobanoglu, 2014). The
people who wish to be a part of this organization are termed as volunteer because they volunteer
without any pressure. This society is independent and works in collaboration of the government
to carry out its activities. The Laws of the operating country relates to the activities of this group
but should be able to maintain autonomy so that they are able to carry out their activities
complying with ethics. This principle carries the power to influence decision making as trustee
will opt for an independent approach rather than relating themselves to a nation or a party.
Voluntary service: Voluntary service has been referred to as activities which are carried
out without looking to gain financial outcomes from the same. The sole purpose of providing a
voluntary service is to benefit another person so that satisfaction can be derived. The volunteers
working with Red Cross participate solely for the purpose of fulfilling needs of others and
sharing their suffering and sorrows. In short, their efforts are aimed to improve quality of life
who has been suffering in physical or emotional manner during times of emergencies. This
guiding principle plays a crucial role in decision making as serving humanity is only emphasized
personal motives of an individual are not given due consideration.
Unity: Unity is defined to be a state which people from different culture and backgrounds
come together and unite. In context of the organisation, there is a single Red Cross society in the
country which looks after the conduct of humanitarian activity in specified area. British Red
Cross society is awarded with responsibility to looks after the needs of people in time of
emergencies through the British region. There can be differences on times of needs ranging from
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region to region which determines the times of decision taken by the trustees but main idea will
only be to share suffering of people.
Universality: Universality in the case of ethics is defined to be truth for all individuals
who are situated together. All the societies which are available in different region must share
responsibility in equal manner as all carry similar status. Red Cross societies are present in 188
nations around the world but all of them share principles and responsibilities so that times of
crisis are improved for people who are suffering. These principles play a huge role in
ascertaining decision which is formulated by management. The behaviour of volunteers is guided
by these principles therefore influences choices which are made by them. All of these societies
be national or international directs their efforts to serve humanitarian needs in times of
emergency.
There is no denying in the fact that situation leading to armed conflict and natural
disasters have been continuously evolving which makes it more important for businesses to
include themselves into fulfilling their responsibility towards the society. Red Cross committee
working at international level have partnered with organisation and government to carry out
humanitarian works. This organisation carries a speciality into health promotion, disaster
management and dissemination of human values. The Red Cross committee is identifying new
approaches through which purpose would be served as emergencies now are more complex
which are difficult to tackle. The efforts are being made to find a common ground between
society and corporations so that better solutions are created to deal with upcoming complexity.
2 (ii) effectiveness of the organization’s response towards ethics and corporate social
responsibility
Red Cross society renders quality services which have been successful in improving the
life of people. The world’s 3rd largest charitable organisation has been successful in fulfilling its
purpose to a greater extent. The contributions of this society are remarkable and are improving
every minute to serve people better. The responsiveness of volunteers towards emergency
situations was good and ensured that suffering of people can be minimized. The assistance is
catered to people in need so that they are able to face difficulty and emerge as a winner. The
organisation’s response to welfare activities in the world are listed below.
Emergency Response: The occurrence of disaster has become quite frequent and Red Cross
society is amongst the first one to respond to the situation. it makes appeal to people to
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overcome the certain situation in the country. The partnership of this society contributes in large
amount to people who come to rescue the people involved. On the occurrence of the emergency
volunteers supports police and ambulance to rescue the people involved. The health and local
authorities work alongside so that people affected from crisis are helped (Loeser and Cahana,
2013). Red Cross society possesses a fleet of modern ambulances and off roaders which help in
tackling emergency situations.
Refugee support: This is another crucial manner through which Red Cross society is
improving the life of people residing in a country. This institution is helping people to tackle the
trauma which refugees are facing. The support is offered to people who are vulnerable and seek
asylum care so that they are able to cope with the change and initiate a new life. Refugees are
catered with physical and emotional support entering into the nation. The response of this
institution is quick and facilitated on a large scale to counter with the hardships. The refugees
who are less vulnerable are provided with short term orientation. Young people are offered with
support so that they are able to gain their self-confidence and command over language which is
essential to deal in the new environment.
Prepare for Disaster: The future is uncertain which makes it essential for a person to have
a contingency plan to counter the uncertainty. This society carries out the same but at a bigger
level as it prepares for situation such as flood, fire or a terrorist attack. Red Cross have
established tips which will help an individual to cope with emergency. Tips on coping with
winter have been provided along with car breakdown, flood and drought situations.
Free Teaching resources: Red Cross society equips people with imaginative teaching
tools so the young guns of today are prepared for the future. They provide with their own free
teaching guide which encompasses various resources and workshops to cater learning to young
generations who are deprived with this opportunity. These workshops and teaching guides are
offered to teachers and their students ranging from 6-19 years old. The guide includes resources
on humanitarianism and Red Cross, conflict and its consequences and knowledge on disasters
and emergencies and way to deal with the same. Along with offering teaching resources several
fundraising events are being organised so that their little needs are fulfilled.
Health and social care: This institution offers range of health and social care services as
well. This is carried out by providing people aid when they are exposed to unfavourable
circumstance in respect to their health. Thousands of people have been able to avail help from
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the society so that they are able to maintain their independence and not relying on someone to
fulfil their basic requirement (Peppard and Ward, 2016). There are people in the country who
have been suffering from diseases which are taboo such as HIV and TB. The Red Cross society
has marked its presence in the South Africa who are deprived of basic health care services.
Society has developed a programme to make people aware about diseases such as HIV and
practice safe sex.
2 (iii) Areas for improvement
It is a no secret that Red Cross is changing lives of people on a regular basis. There are
millions of people who have uplifted their life just because of the intervention of volunteers of
the society. There are some areas which are not utilised by this charitable organisation such as
technology in operations is not yet adapted to its ideal scale which can further help in connecting
to more people and resolving their issues. Introduction of the technology can help in provision of
services of social and healthcare over contemporary platforms making it more convenient for
both the parties. Another domain which is untouched is marketing. This society can adopt
marketing over social networking platforms as they are more convenient and can further assist
this institution in garnering additional funds to carry out their operations.
CONCLUSION
It can be concluded from the above assignment that Red Cross society has become a crucial
part of the world. This charitable organisation has been successful in catering the needs of people
overtime and assists them in dealing with difficult circumstances. However the change in the
external environment carries a direct and indirect impact on the functioning of this institution as
well. Red Cross can be benefitted with government policies and assistance to carry out its
operations in the country. The governing principles such as humanity, unity, impartiality and
independence act as a crucial determinant when it comes to formulation of decisions. The ethics
help volunteer cater services which encounters with emergency or disaster which occur
frequently. The inculcation of technology will help this institution is reaching out to more people
and generating better funds.
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countries. Routledge.
Dar, S. and Cooke, B. eds., 2013. The new development management: critiquing the dual
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Online
Economic Recession Continues To Hit Nonprofits Hard. 2017. [Online]. Available through: <
http://www.huffingtonpost.in/entry/nonprofits-continue-to-fe_n_838855>.
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