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Significance Of Corporate Social Responsibility


Task: In the article below, the authors discuss issues in relation to CSR.
For this assessment task,
• Define the key term 'CSR'.
• Discuss what types of CSR were considered by the company as described in the article below. Why were they considered unsuccessful?
• Discuss other reasons CSR may be successful for other companies.
• Recommend whether or not a company should implement CSR.
For this assignment, you are also required to create a professional looking document by using a report format.


Executive Summary
The main aim of the study is to exhibit the significance of incorporating corporate social responsibility along with its positive impacts. With the help of case scenario, it has been evaluated that the companies may encounter negative results that might hamper their overall productivity if the intention of implementing CSR is not cleared. Also, different theories that can be integrated by the companies to promote corporate social responsibility for the benefits of its company have been explained.

The major objective of the companies is to render a positive impact on the society that would enable the company to sustain brand recognition and sustainable competitive edge in the market. Thus, to sustain a positive impact from the society as well, the companies must incorporate effectively with the essential corporate social responsibility policies. The main agenda of the CSR policy is to guide the corporate sectors to render its business ethically following while creating core values to its customers, society and employees. The study aims to explain the significant impact of implement and the positive aspects that are sustained by the companies if they effectively collaborate with the corporate social responsibility policies. There are many renowned companies like Selfridge, ZARA and Tesla, who have taken up strong CSR initiatives and as a result, have successfully created a strong position in the market while sustaining a sustainable competitive edge.

Definition and significance of CSR
According to Meier and Cassar, (2018), corporate social responsibility (CSR) is a wider concept that determines formulated aspects required for business processes to render a positive impact on society. In the context, de Jong and van der Meer, (2017), the concept of CSR covers social and ethical impacts, sustainability along with the methods of that evaluated core business. Thus, CSR practice is a commitment of the company is endeavoring its business operation in which the company behaves ethically along with contributing towards its economic development.

corporate social responsibility

Figure 1: Business units under CSR policy
(Source: Meier and Cassar 2018)

The above figure illustrates that for any company to sustain success along with a sustainable competitive edge in the market are required to effectively collaborate with all the elements consist of both internal and external environment. According to Amor-Esteban, Galindo-Villardón and David, (2018), in the current era of business, corporate social responsibility has become a standard business practice. Companies that are committed towards the CSR policies are found to enhance and develop its reputation both in the local and global market.

corporate social responsibility

Figure 2: Social responsibilities of organization associated with CSR policy
(Source: Klimkiewicz and Oltra, 2017)

As opined by Arora, (2016), the formulation of corporate social responsibility policies is considered as a crucial practice for every company in achieving a competitive edge in the increasingly competitive market. Thus, it has become essential for the employees and the organization to understand changing working conditions while rendering necessary benefits to its society. According to Klimkiewicz and Oltra, (2017), basic seven core holistic approach required to be collaborated by the companies are complying with human rights, labour practices, fair operating practices, environmental protection approaches, community development along with resolving customer’s issues. All the respective discussed points are proactive ideas that would help the company ethically change its organizational structure while ensuring a sustainable competitive edge, brand recognition along with customer loyalty in the respective market.

According to Jankalová and Jankal, (2018), based on the norms of ISO 26 000 when the company effectively collaborates with the corporate social responsibility policies it influences other areas and departments of the company while enabling the company to grow, create high standard reputation, control labour turnover, retain its potential customers, clients and even labours. In the context of Arora, (2016), incorporating with CSR policies enables to enhance employee morale, productivity and commitment of the employees towards the company. Also, the company would be able to improve its relationship with the government, suppliers, media, peer, community, and other international and local companies.

What are the types of corporate social responsibility considered by the company as described in the article?
In the given article, conducted by Meier and Cassar, (2018), it has been evaluated that to investigate the significant impact on the company by implementing CSR tools, the motivation and intention of the company must be pure so that it can effectively influence the employees to take active participation. The two activities that have been identified from the case study of M-Turk Companywas as discussed below:

  • The company divides its employees unit into two groups out of 3000 employees. To half of the member of the 1500 workforce team, the company announced that incentive would be distributed if they submit extra slogans at half of the baseline price as an incentive.
  • To the other half of the 1500 workforce, the company explained that the additional amount that they would gain from doing extra slogan would be donated to charity. This was determined as a conditional charity
  • To the remaining half of both, the group the company exclaimed that whether or not they write an extra slogan, they would be offered incentive and the company would be indulged into the charitable aspects.

Thus, it can be determined that the approaches in aspects to corporate social responsibility activity that were made by the M-Turk, was evidenced to be unsuccessful. It has been very well judged that the employees look forward to the intention of the company rather than the range of charitable activity it is performing. Hence, this approach of CSR practices that are conducted by M-Turk was found to be less effective to motivate the employees, less socially responsible along with less generous intentions towards both the society as well as the employees. After analyzing the study, it has been evaluated that the condition charity incentive claimed by the company made its workforce believe the fact the major reason behind the company performing the CSR activity is self-profit. However, it can be observed that if the company was genuinely indulged into CSR activity of charity without rendering any condition towards its employees it would have received accurate support from them.

From the case scenario, it has been evaluated that the efforts of the members who were offered monetary incentive only if they would provide the company with the extra slogan were more as compared to them to whom the condition of charitable incentives was made. Also, it has been evaluated that the members to whom it was stated that whether they do the extra slogan or not, the company would be performing its responsibility towards its society, has increased the productivity of the members as they found that the intention of the company was pure to help society without incurring any profit. Also, the members who were asked the firm for rendering conditional incentive he started the company less socially responsible towards its duty for society. Also, with the approach that was made by the company was to lower down its cost on productivity, which was covered under the corporate social responsibility activity, by sustaining extra slogan at the cheapest prices from its existing employees, for which if the company appoint new candidate would be forced to pay baseline amount. Thus, from the study, it has been clearly stated that to eliminate any negative impact it is essential for the company to incorporate its CSR activity with clear intention and motive.

Discuss other reasons CSR may be successful for other companies.
According to Delgado-Márquez, Pedauga, and Cordón-Pozo, (2017), corporate social responsibility enables all sector of business units to embrace positive changes that would help the company gain success and growth for a relatively long term. In the context, Chaudhri, (2016), stated that when the companies perform right things for the bottom line along with sustaining financial benefits, they would be able to build strong trust and loyalty factors among its customers. In the matter of customers, it has been evaluated that customers are very fond of using the products and services of that brands that indulge into necessary CSR activity, as per them they feel like they are even contributing some value for the development of the society. This enables the company to create an image of socially responsible firms while increasing its brand loyalty along with recognition in the market. It has been evaluated that effective integration of CSR policies helps the company to improve its market values. Supporting the facts, Ver?i? and ?ori?, (2018), stated corporate social responsibility helps the company to raise awareness, encourage social changes along with help build ethical factors in the country while motivating others to become more socially responsible towards the environment and society.

For instance, Tesla is a renowned automotive company that produces one of the best leading electric cars. In the matter of CSR activity, the company majorly focuses on reducing the emission of harmful gases to eliminate carbon footprint. For this, the company is found to use more of the renewable resources. Another company Matalan, one of the UK’s renowned departmental stores is evidenced to integrate certain CSR policies by improving the labour policies in which the company provides both financial and psychological services to its employees. Due to this, the company is known as number one in controlling its employee’s turnover while maintaining accurate employee retention and engagement. These are some of the benefits that are sustained by the organization of the large sector while integrating the CSR approaches efficiently.

From the current survey, it has been evaluated that millennial are supporting more of the CSR activities, believing the fact that the companies are required to invest so that social condition can be improved. According to Brunton, Ewej and Taskin, (2017), it has been evidenced that CSR improves the economic conditions while creating a valuable performance that enables the company to sustain sustainable development. Hence, this can be their key to control and management, changing variables of environmental and societal aspects while overcoming challenges; this might lead to hampering the overall operation and functioning of the company. Hence, the sustainable development that is allowed by the corporate social responsibility would enable the coming and current generations to meet their needs without any kind of compromise.

Recommendations following theories
The recommendation regarding the implementation of CSR within the organization can be evaluated with the help of certain theories and models that are enlisted below,

Carroll's CSR Pyramid
This is the simple framework, which an organization should adopt to get assisted for the needs of meeting with the social responsibilities. According to the views of Carroll (2016), Carroll's CSR Pyramid helps in the building up the foundation of the company profit along with ensuring compliance with the regulation and laws. This process helps in meeting the ethical duties of the business. Four responsibilities are comprising within this pyramid such as:

Philanthropic: It is the responsibility of the company that contributes to society being discretionary but is still essential. For instance, the charitable donation, time of staff on projects. However, this must be performed in a good faith without obtaining any sort of personal benefit as evaluated from the case scenario.

Legal: it is the responsibility of the company for obeying the regulations and laws such as competition, employment along with health and safety. 

Economic: It is the responsibility of the company to make its business profitable along with gaining long-term benefit with survival.

Ethical: It is the responsibility of the company to act with ethical and moral values without considering any profit intention, which in the given case was avoided. This duty helps the company to go beyond the confined requirement of the law such as treatment for the employees as well as suppliers.

Therefore, according to the statement presented by Ehie, (2016), the organization, M-Turk should adopt Carroll’s CSR Pyramid model as it is simple to understand with giving simple messages, as the CSR activity conducted by the company has rendered adverse impact on both the company and its employees. In addition, complying with the respective CSR model would help the company to emphasize upon the profit importance. 

Triple bottom line model
It is recognised to be the framework, which recommends an organisation for focusing upon the environmental and social concerns as the way they do upon profit. The TBL consist of their bottom lines such as Profit, Planet and People. This helps in gauging the commitment of an organisation towards the corporate social responsibility as well as its impact upon the environment over some time. This is the way which helps in increasing the financial profit of the organisation as well as it helps in improving the lives of the individuals who are the habitat of this planet. However, according to the observation of Hammer and Pivo, (2017), the TBL model consists of certain understanding, which should be focused such as,

The total cost of performing the business
The first Bottom Line of an organisation consists of the company’s profit and with the incorporation of the TBL model, the company advances its goal for the sustainability of the business. This helps the organization to look beyond the gaining of profit that includes the environmental and social issues along with measuring the total cost of performing the efficient business. 

Planet + People = Environmental + Social Responsibility
The organisation adopting the TBL should work simultaneously on the bottom line such Profit which is the traditional measurement of the corporate profit and loss, People to measure how the organisation has been socially responsible for performing their operation throughout and lastly, the Planet to measure how much the organisation has been environmentally responsible.

Thus, the Organization, M-Turk should adopt these Triple Bottom Line model with the interrelated element, which can be an essential tool for supporting them to attain its sustainable goals in more accurate manner.

Hence, it is recommended that M-Turk must incorporate with the respective CSR model to restructure its CSR activity, as it would help the company to again its employee’s loyalty and support.

The present study highlights the Concept of corporate social responsibility along with definition and significance. The types of CSR, which have been described through the instance of M-Turk company, according to which, the companies need to exhibit good intentions towards contributing to the development of the society, to pacify the staffs and motivate them to participate in pro-social initiatives organized by the companies. The recommendation along with using the Theories like Caroll’s CSR Pyramid and the Triple Bottom Line Theory, which helps in the maintenance of CSR for the sustainability and development within the organisation, has also been mentioned within the current study.

Amor-Esteban, V., Galindo-Villardón, M. P., & David, F. (2018). Study of the Importance of National Identity in the Development of Corporate Social Responsibility Practices: A Multivariate Vision. Administrative Sciences, 8(3), 50.

Arora, R. (2016). Enhancement in employee skills and benefits to employees and organization concerning CSR Initiatives.JIM Quest, 12(2), 39.

Brunton, M., Eweje, G., &Taskin, N. (2017). Communicating corporate social responsibility to internal stakeholders: Walking the walk or just talking the talk?. Business Strategy and the Environment, 26(1), 31-48.

Carroll, A. B. (2016). Carroll’s pyramid of CSR: taking another look. International journal of corporate social responsibility, 1(1), 3.

Chaudhri, V. (2016). Corporate social responsibility and the communication imperative: Perspectives from CSR managers. International Journal of Business Communication, 53(4), 419-442.

de Jong, M. D., & van der Meer, M. (2017). How does it fit? Exploring the congruence between organizations and their corporate social responsibility (CSR) activities. Journal of Business Ethics, 143(1), 71-83.

Delgado-Márquez, B. L.,Pedauga, L. E., &Cordón-Pozo, E. (2017). Industries regulation and firm environmental Disclosure: a stakeholders’ perspective on the importance of legitimation and international activities. Organization & Environment, 30(2), 103-121.

Ehie, I.C., 2016. Examining the corporate social responsibility orientation in developing countries: an empirical investigation of the Carroll's CSR pyramid. International Journal of Business Governance and Ethics, 11(1), p.42755.

Hammer, J., & Pivo, G. (2017). The triple bottom line and sustainable economic development theory and practice.Economic Development Quarterly, 31(1), 25-36.

Jankalová, M., & Jankal, R. (2018). Sustainability Assessment According to the Selected Business Excellence Models. Sustainability, 10(10), 3784.

Klimkiewicz, K., & Oltra, V. (2017). Does CSR enhance employer attractiveness? The role of millennial job seekers' attitudes. Corporate Social Responsibility and Environmental Management, 24(5), 449-463.

Meier, S., & Cassar, L. (2018). Stop talking about how CSR helps your bottom line. Harvard Business Review, 31.

Shin, I., Hur, W. M., & Kang, S. (2016). Employees’ perceptions of corporate social responsibility and job performance: A sequential mediation model. Sustainability, 8(5), 493.

Ver?i?, A. T., &?ori?, D. S. (2018).The relationship between reputation, employer branding and corporate social responsibility. Public Relations Review, 44(4), 444-452.


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