It is sometime suggested that CSR activities are increasing strategic in that it affects that core business of the firm and its growth, profitability and survival? Drawing on an example of a corporation/company (National/ International), discuss this in the context of business strategies, in particular on the issues of competitive advantage and firm performance.
In this essay, we will discuss why organizations began CSR and how it is or can be or why should it be implemented. CSR usually get started off either as an integral part of the business strategy or corporate identity, or it can be used as a defensive policy, with the latter being used more often by companies targeted by activists. Rationale for CSR implementation is based on either a moral, a rational, or an economic argument (Werther & Chandler, 2006). Campbell (2007) which is a representative of a group of studies that create testable propositions related to the conditions under which organizations will move toward CSR. Studies show that corporations’ level of social responsibility as being influenced by factors such as financial conditions of the firm, health of the economy, and well-enforced state regulations. Reason why companies take on CSR is also being discussed in the literature in terms of the specific initiatives under which CSR may fall. Ways of describing these rationales varies, from the more skeptical view of cause-related marketing to a more generous attribution of genuine socially responsible business practices (Kotler & Lee, 2005). To ascertain how CSR is implemented in organizations, some researchers uses a developmental framework to show change in awareness, strategy, and action over time, and posits stages of CSR from elementary to transforming (e.g., Mirvis & Googins, 2006). Jackson and Nelson (2004) take more of a how-to approach, offering a principle-based framework for mastering what they call the “new rules of the game.” Examples of principles include harnessing innovation for the public good, putting people at the center, and spreading economic opportunity where in this essay will discuss on how Toyota Motor Corporation applies this.
CSR of Toyota Motor Corporation
Many companies have established their corporate identities using branding through CSR, which has eventually becoming a focal point of their success and competitive advantage (Werther & Chandler, 2006). Toyota Motor Corporation recognizes corporate social responsibilities and emphasis on safety, the environment and education to offer to people the tools needed to make a difference to help and protect the environment. The company operates under the guidance of a global earth charter that promotes environmental responsibility throughout the organization worldwide. Toyota becomes the leader in leading the industry to lower emissions and improving fuel economy vehicles. Not only did Toyota create the world's first mass-production gas/electric hybrid car, they are also working ahead in the development of future fuel cell vehicles. (Toyota.com 2011) Toyota Motor Corporation’s commitment to preserving the environment doesn’t stop at just their vehicles. Two of their manufacturing plants have been designated as zero landfill producing operations. “Green” complex in California has one of the largest commercial solar panel systems in North America which conserves more than 11 Million gallons of drinking water annually through special pipelines that supply recycled water for cooling and landscaping. (Toyota.com 2011) In addition, contributing to their dedication in environmental preservation, Toyota has also developed strong partnerships with organizations such as The National Arbor Day Foundation and The National Environmental Education & Training Foundation. The corporation partners with organizations, schools, universities and other businesses to support programs that help make the world a better...