Corporate Social Responsibilty
Business Management | Corporate Social Responsibility:A brief discussion on the role of CSR as an invaluable asset to companies for the creation of financial & non-financial value, including the utilization thereof to reduce the impact of corruption and bribery, and growing economic value for both companies and society. | | |
A global mind shift has occurred recently in the business sector regarding the value of reputation and how it directly impacts, not only the company’s profit margin, but the market as a whole. Companies have realised how Corporate Social Responsibility (CSR) goes hand-in-hand with reputation, thereby making it a valued asset; and how this is influencing the purchasers’ perceived value of a company and its products.
There are four main reasons why companies need to buy into a CSR strategy and they are: * Moral obligation, * Sustainability, * License to operate, and * Reputation.
The biggest challenge faced by companies today is how to provide for the needs of the present generation without compromising the needs of the next generation. More and more governments are putting pressure on companies to have sustainable plans in place which impact positively on the environment and society. South Africa established the King Report in 2002, to establish the foundation for good CSR. No longer is it only about the bottom-line (profits) but also that companies’ need to be good corporate citizens. For companies to be successful they need healthy societies to thrive in. This means good education and healthcare systems and equal opportunities to provide a productive workforce. Pick n Pay one, of the first companies in South Africa to implement a CSR strategy has imbedded it in their vision and mission. PnP supports projects that encourage self-reliance and entrepreneurship. A key success factor has been the linking of emerging farmers to the PnP stores, whereby they support them through mentorship programs.
The way
A global mind shift has occurred recently in the business sector regarding the value of reputation and how it directly impacts, not only the company’s profit margin, but the market as a whole. Companies have realised how Corporate Social Responsibility (CSR) goes hand-in-hand with reputation, thereby making it a valued asset; and how this is influencing the purchasers’ perceived value of a company and its products.
There are four main reasons why companies need to buy into a CSR strategy and they are: * Moral obligation, * Sustainability, * License to operate, and * Reputation.
The biggest challenge faced by companies today is how to provide for the needs of the present generation without compromising the needs of the next generation. More and more governments are putting pressure on companies to have sustainable plans in place which impact positively on the environment and society. South Africa established the King Report in 2002, to establish the foundation for good CSR. No longer is it only about the bottom-line (profits) but also that companies’ need to be good corporate citizens. For companies to be successful they need healthy societies to thrive in. This means good education and healthcare systems and equal opportunities to provide a productive workforce. Pick n Pay one, of the first companies in South Africa to implement a CSR strategy has imbedded it in their vision and mission. PnP supports projects that encourage self-reliance and entrepreneurship. A key success factor has been the linking of emerging farmers to the PnP stores, whereby they support them through mentorship programs.
The way
References: Anon, Foundation - Pick n Pay. [online] available at: http://www.picknpay.co.za/picknpay/content/en/foundation [Accessed 15 March 2013] Anon, Nedbank Current Media Release Media Centre. [online] available at: http//:www.nedbank.co.za [Accessed 15 March 2013] Anon, Social Responsibilities - Corporate Social Responsibility - Virgin Active South Africa. [online] available at: http://www.virginactive.co.za/socialresponsibilities/view/4 [Accessed 15 March 2013] George, J.M., Jones G.R.,2011. Contemporary Management, 7th ed. New York: McGraw-Hill/Irwin (Heilman & Ndumbaro 2002; Hills et al. 2009; Social et al. 2009) Heilman, B. & Ndumbaro, L., 2002. Corruption , Politics , and Societal Values in Tanzania : An Evaluation of the Mkapa Administration ’ s Anti-Corruption Efforts. , 7(1), pp.1–19. Hills, G., Fiske, L. & Mahmud, A., 2009. Anti-corruption as Strategic CSR : A call to action for corporations. , (May). Mehra, A., Agboo A. Forbes 2001/01/07 The Corporate Responsibility to Prevent Corruption. [online] available at: http://www.forbes.com/sites/csr/2011/07/01/the-corporate-responsibility-to-prevent-corruption/ [Accessed 8 march 2013] Social, C., On, R. & Farooque, B., 2009. Social Science Research Network. [online] available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2164560 [Accessed 9 March 2013]