In the world today, Corporate Social Responsibility (CSR) has become one of the most essential aspects adapted by governments and companies. The concept of CSR normally relates to the firm’s decisions in which would help out towards the company’s growth as well as improving the development of having a better society. The reason CSR has become very important for firms today is to counteract the growing public skepticism caused by corporate wrongdoings (Birth et al., 2008). CSR is defined as “a model of extended corporate governance whereby who runs a firm (enterpreneurs, directors, managers) have responsibilities that range from fulfillment of their fiduciary duties towards the owners to fulfillment of analogous fiduciary duties towards all the firm’s stakeholders” (Sacconi, 2004). In other words, initiative to evaluate and take accountability of a company's actions on the environment and social welfare. In this assignment, we will be addressing some of the controversial issues and challenges of the current corporate social responsibility practices among companies in Malaysia.
Today, among companies, there is an increase of awareness and active participation by the corporate professionals in the evolution of CSR. (John Garett, 2012). More organizations are now actively participating in the green era to create an eco-friendly environment by embracing sustainable processes and practices. Such example that we look into would be Sime Darby and The Body Shop.
Sime Darby has been working on Corporate Social Responsibility (CSR) to sustain its good relationship with the public and to ensure business and operational sustainability. The said company, has created an awareness project event called the “Project Rhizo 2.0”. This project involves planting of mangroves saplings in Port Dickson. Besides that, more organizations are moving its products and services to a low carbon economy and introducing it in all areas in their business. There are several positive outcomes in practicing corporate social responsibility in an organization such as obtaining an increase in returns on investment (ROI). In regards to positive outcomes of corporate social responsibility, the following discussions are few credible benefits to the increased of returns on investment by the corporate social responsibility. Firstly, corporate social responsibility will enhance the operational efficiencies and cost savings. A systematic approach management of environmental practices helps employees to understand the relationship between corporate social responsibility and an increased operational efficiency and maintaining continuous improvement. As such, educating the employees on corporate social responsibility is important because it can increase the sales revenue by supporting greater efficiency through less wastage of raw materials, energy and water usage. Hence, organizations will meet sustainability and quality, which will lead to an increase in sales.
Secondly, corporate social responsibility helps to improve innovation, competitiveness in the market and market positioning. The essential step to this practice is to collect more feedbacks from its diverse stakeholders in order to gain more ideas in creating new product. For example, Sime Darby Malaysia ensures that an appropriate initiative is taken across its business to address its stakeholder’s concerns and effectively respond towards the needs of their stakeholders.
Lastly, it is the brand image produced, that is strengthened by emphasizing corporate social responsibility. In today’s business world, most brands are perceived by various internal or external organizations and their responses to these perceptions. Creating or strengthening the brand image of a company requires factors such as good business ethics and honesty as well as environmental responsibility and also active participation in the community. This is when corporate social responsibility comes in. CSR has to be implicated and...
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