Strategy and Culture
Corporate Social Responsibility (CSR) is a luxury companies can’t afford during recession. Discuss
INTRODUCTION
CSR is mainly concerned with giving back to the society, that is, the environment within which the business operates. CSR is not only involved with what the business does with the profits, but also how the business has made its profits in the first place. It aims to meet and exceed the stakeholders’ expectations (Johnson, et al., 2005) The examples of CSR responsibilities have been elaborated using these dimensions; the employees, suppliers, customers, physical environment and the social environment (Jobber, 2010). Through this study we shall see that all these work together to fulfil a common goal for the company, which is profitability, sustenance and long life, and working in harmony with the society at large.
Arguments for CSR
1. It is often assumed that CSR increases operating costs, but in my opinion this is not the case; better environmental management for example, waste reduction, recycling of materials, energy efficiency can help in cost cutting and improving efficiency. For example, Wal-Mart encouraged companies to reduce the size of packaging. This enabled it transport more goods in few trips thus reducing emissions from trucks and saving on fuel costs as well. Wal-Mart also insisted on their manufactures to produce concentrated laundry detergents, which enabled it to save on packaging costs and shelf space (Jimena, 2009).
2. Through CSR a company can contribute positively to the society, hence building trust and creating a good image for their company. For example, BP has an advertisement showing that they have taken steps into reducing harmful emissions. As a result of these a company will easily be accepted by a society, especially when venturing into new markets. They will also gain customer loyalty, which can help them survive and get through the recession period.
3. CSR, if planned well, can provide marketing opportunities
INTRODUCTION
CSR is mainly concerned with giving back to the society, that is, the environment within which the business operates. CSR is not only involved with what the business does with the profits, but also how the business has made its profits in the first place. It aims to meet and exceed the stakeholders’ expectations (Johnson, et al., 2005) The examples of CSR responsibilities have been elaborated using these dimensions; the employees, suppliers, customers, physical environment and the social environment (Jobber, 2010). Through this study we shall see that all these work together to fulfil a common goal for the company, which is profitability, sustenance and long life, and working in harmony with the society at large.
Arguments for CSR
1. It is often assumed that CSR increases operating costs, but in my opinion this is not the case; better environmental management for example, waste reduction, recycling of materials, energy efficiency can help in cost cutting and improving efficiency. For example, Wal-Mart encouraged companies to reduce the size of packaging. This enabled it transport more goods in few trips thus reducing emissions from trucks and saving on fuel costs as well. Wal-Mart also insisted on their manufactures to produce concentrated laundry detergents, which enabled it to save on packaging costs and shelf space (Jimena, 2009).
2. Through CSR a company can contribute positively to the society, hence building trust and creating a good image for their company. For example, BP has an advertisement showing that they have taken steps into reducing harmful emissions. As a result of these a company will easily be accepted by a society, especially when venturing into new markets. They will also gain customer loyalty, which can help them survive and get through the recession period.
3. CSR, if planned well, can provide marketing opportunities
References: Blanche, E., 2004. Shell Scandal Points To Exaggerated Estimates of Oil Reserves. The Daily Star, 17 April. Charles, 2008. Nike Just Don 't do IT. [Online] Available at: http://www.slideshare.net/chuckoluckorama/nike-is-bad Gerry Johnson, K. S. R. W., 2005. Exploring Corporate Strategy. 7th ed. s.l.:Prentice Hall. Jimena, J., 2009. What does CSR have to offer in a recession?. Canadian Mining Journal, May.p. 11. Jobber, D., 2010. Principles of Marketing. 6th ed. s.l.:McGraw-Hill. Princessa, B., 2011. Nike 's Labor. [Online] Available at: http://www.slideshare.net/bella_princessa/nikes-labor Rawat, K. P., 2010. The Body Shop. [Online] Available at: http://www.slideshare.net/kannupriya23/the-body-shop-3594407 Stephen L. Baglione, V. Z., 2012. A Comparison of the United States and Slovenia during the current Recession. Corporate Social Responsiblity, 1 January, Volume 9, pp. 97-106.