Business Responsibility and Sustainability (Essay Sample)

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I have selected to research on this topic "Managing CSR in global companies is complex and requires an integrated approach”. Corporate Social Responsibility CSR is a controversial and complex concept in business, but companies are expected to change their strategies towards the social setting they are hosted, (Porter & Kramer 2002). Companies have succeeded, and others have failed while applying this concept based on the approach they use. There has been pressure for those companies operating globally because of the varying CSR concepts, Collins states that the practical implementation of CSR is here to stay and companies are overlooking it the reason it is not being integrated into corporates strategies, (Collins, 2007).
Corporate social responsibility is termed as the activities that businesses engage into in order to operate in a social, economic and environmentally sustainable mode for the benefit of the whole community. The world is changing drastically and social and environmental issues have become crucial making the customers vigilant on the type of goods they purchase; the customers are not going for the best prices they are going for goods that pose a positive impact on their society, (Fallon, 2014). This trend has made it possible for companies that are responsible socio-economically and environmentally to achieve their goals. The impacts of CSR to both company’s and the society led the European Commission to put in place a strategy to be applied by all member states in 2011, (Kaufmann & Olaru, 2012). However, Companies operating globally have experienced difficulties in the practical implementation of CSR as they do not focus on what CSR is but focus on sustainability making it difficult to realise the benefits of applying CSR, (Smith, 2011). Corporate Social Responsibility is complex in the global market, and companies are required to apply all inclusive measure and techniques in running their companies.
Organizations today are facing difficulties in the management of companies due to their goals and objectives or the priorities. Global organizations main purpose of extending their services is making more profit. Organizations owe to the shareholders a profitable outcome every year; social responsibility is associated or attributed to profits, but the process of meeting the CSR requirements abroad comes with a price tag included which builds up a conflict. Companies have failed to incorporate or integrate crucial substances like, having projects that meet CSR objectives or having to choose the CSR project alone, (Nielson, 2010). The difficulty to achieve that makes the implementation process and running of CSR difficult for organizations. The best method for the organizations is to study the needs of CSR and incorporate all of them in their projects in order to achieve profits required, Pomering, & Dolnicar, 2009).
Corporations have failed to understand what is socially responsible and what is not due to the difference social groups they serve internationally. Most countries try to meet the needs of the host environment and at times it becomes a challenge for them, as some of the group’s objectives are not met, (Geczy et al. 2005). This proves the complexity of the CSR concept when operating global; at times organizations are caught up in a situation where the needs of two groups need to be addressed. If the company responds to one group’s interest the management will be viewed as irresponsible, furthermore meeting the two group’s interest is difficult unless the management has a clear understanding of the concepts in CSR and how they can be applied effectively in such a situation, (Nielson, 2010).
Balancing of priorities has made it easy for companies to apply the required efforts in meeting the full potential in CSR concept. Meeting the shareholders and the society needs becomes a problem if the company do not choose balanced strategies towards its achievement strategy. A study by McKinsey proves the need to integrate all factors involved as executives agreed that corporations should balance shareholder needs when they wish to make contributions for the benefit of the society or specifically meeting the CSR objectives, (Smith, 2011). A survey by the Business for Social responsibility states that global CSR professional has different perspectives of the CSR concept. Their responses to the question; what is driving the CSR agenda shows the differences and the percentage of professionals who believe in integration of CSR. 8 percent says that they expect a decrease in their sustainability budgets, 72 percent says that respondents believe that more demand will be required in order to solve societal issues, (BSR/GlobeScan, 2009). 77 percent strongly believe that global businesses will have to integrate CSR into their operations and strategies in the next five years from 2008, (BSR/Cone, 2008). The idea of integrating becomes a reality now as the organisations awareness on what CSR is advancing.
Corporations are viewing activities related to CSR as a basic requirement for their survival in the markets. A report by Edelman concludes that the purpose and profit of a global corporation must fulfil the needs or benefit the society. Transparency, proper treatment of employees and perfect corporate citizen has been regarded as the key factors in achievement of this concept, (Edelman, 2011). The need to observe the factors has come after the United States and the United Kingdom refer to financial services as least trustworthy as a result of the havoc created by the latest financial crisis, (Geithner, (2008). When companies are in the quest of fulfilling the corporate objectives there is need to focus on all the factors in CSR as they all matter. From Edelman’s work, we have noticed that the employees treatment matter too as they are stakeholders under the definition of social responsibility. Every company requires top brains in their organization in order to produce the best, (Edelman, 2011). Fallon (2014) says that it is not only consumers who are attracted to businesses that observe CSR but employees with top talents are choosing companies with a potential to make a difference in the world. A statement in Fallon’s work states that "…coming out of the recession, corporate revenue has been getting stronger. Companies are encouraged to put that increased profit into programs that give back." (Fallon, 2014). This statement supports the idea that the CSR strategy is getting stronger and more complex, and the organizations needs to employ techniques through their profits into programs that pay back, (Levine, 2008). Today employees seek employers who are focused towards a triple bottom-line: revenue, people and the planet. All this aspects are incorporated in CSR and must be observed by integrating them in the business strategies, (Holt, D. & Wigginton 2002).
Global companies face issues of conflicting policies in their home countries and the host countries. There are risks associated with CSR and the companies need to study the complexity of the markets they wish to join so that they can evaluate whether the goals will be met or not, (Foreign Affairs, Trade and Development Canada, 2014). For example a company operating in Canada will not be required by law to offer ay bribe in and outside the country, for some countries bribery is an order of the day and before any business get to transact they must pay some cash. In case countries from North America pay any of these bribes money they will be fined in their home country as they have broken the laws on corruption in business. It is then wise to try and escape such traps while operating globally by having an initiation phase project to study the laws of the country they are interested in doing business with, study the home country regulations pertaining going global, will the company be required to import any equipment and familiarise themselves with the international laws regarding labour and human rights. The managers involved should make sure they fully understand the CSR policies in the home country so that they don’t violate them, (International Standards Organization, 2010). The managers are also expected to study how well their policies follow the international law, as well as the standards, laws and social customs in the host country of their project, (Nielson, 2010). A study of the possible stakeholders should be done to determine whether there will be any conflicts with the organizations CSR policies. When the project manager accepts to study the market, they wish to enter the complexity of the CSR concept will be addressed as the conflicts that occur will have been studied and the best solutions identified.
While implementing CSR it is important for organisations to apply the strategy for CSR as it offers a legitimate case for action. The company also gets a legitimate case in incorporating CSR into the organizations plans and strategies. This strategy is better and more successful in case the strategy used does not rely on the wide approach to CSR, the company should focus on incorporating CSR advancement strategy objectives into its sourcing plans and functional strategies, Hull, & Rothenberg, 2008). This is the same thing as integrating the CSR objectives into the company’s objectives. Broad considerations require evaluating due to the complexity of CSR. CSR challenge customers to assess the effects of what they buy, how they purchase it. This cover’s the CSR effects before purchase, while in conversation and use and the impacts after use of the product purchased. This fact demonstrates the complexity of CSR the reason companies like Nestle has applied the concept of Shared value in its supply chain to be one attempt, (Nestle, 2006). This approac...