Corporate Social responsibility (Part A - Question 1 (Topic-4)

International Business

Contents
Corporate social responsibility (CSR).....................................................................................................2

Introduction.............................................................................................................................................2

Major CSR issues......................................................................................................................................2

Describing topic in terms of economic, social and environmental..........................................................3

Carroll’s pyramid of CSR..........................................................................................................................4

The range of objectives and strategies....................................................................................................5

References..................................................................................................................................................8

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Corporate social responsibility (CSR)

Introduction
The assessment is made in regards to the Corporate social responsibility (CSR) concept of newly
internationalized company TAKIMAKI. The company needs to expand its business in the UK,
so it needs to understand the concept of CSR in a different way. The demanding and fast-paced
business environment of modern economies has created several shifts in business working
paradigms and CSR is the one that has emerged from these changes. Therefore, Sharma and
Kiran (2013) stated that CSR has become a key business issue for rapid growth. The assessment
will discuss the CSR framework and the different issues that occur in the CSR, and briefly
introduce the content related to economic, social and environmental factors. Different strategies
and objectives will be considered in this particular business process. Particularly in international
business, the overall process of CSR is too effective and will be explained in detail in subsequent
reports.

Major CSR issues

The contemporary business environment is undergoing tremendous changes, and these changes
will affect the company's operations. Changes come from external and internal business
environments. The survival of an organization in this environment depends on its ability to adapt
to current business dynamics, which is an essential element for obtaining a competitive
advantage. Joyner, Payne and Raiborn (2002) emphasized that business operations are affected
by social changes. For TAKIMAKI, it is crucial to ensure that its operations take into account the
various social benefits that prevail. Joyner, Payne, and Raiborn (2002) added that an
organization’s contribution to society affects its profitability

The importance of society in organizational competitiveness has led people to increasingly

recognize the importance of the concept of CSR. In order to survive in such industry,
TAKIMAKI should focus on many aspects of CSR, including developing a high degree of
integrity, ethics, business value, and operational responsibility (Joyner, Payne & Raiborn, 2002).
Ethics refers to behaviors that are considered good or bad behavior.

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Ethical issues mainly involve assisting companies to deal with ethical dilemmas in their
operations. Some CSR issues that companies should consider include conducting business with
environmental awareness, ensuring the best employee safety and public health, and other
variables. People's awareness of certain companies operating irresponsibly has increased, leading
to a higher awareness of business ethics and corporate social responsibility. Subsequently, the
consolidated corporate social responsibility will play an important role in improving the viability
and long-term competitiveness of TAKIMAKI Capital. Porter and Kramer (2013) believe that
“companies’ high attention to corporate social responsibility is not entirely voluntary” (p. 2).

Describing topic in terms of economic, social and environmental

The requirements and expectations of the company’s stakeholders specify the areas of action that
are responsible for the society, and also apply to respect for workers’ rights, ethical relationships
with customers and suppliers, and attention to natural resources to analyze and limit the
company’s environmental impact. While supporting responsible consumption and respect for
human rights, our society pays more and more attention to its social, environmental and
economic environment. Therefore, it is very important for emerging international companies like
TAKIMAKI to introduce better versions of CSR policies and measures. In formulating a CSR,
the company should be supported by international norms, standards and codes of good industry
practices and the formal requirements of customers.

However, the purpose of the CSR process of all companies is the same, which makes the planet a
better place for people to live in society and the environment. In this regard, TAKIMAKI needs
to keep all aspects in mind. Such as:

 Quality of the management - the inner circle (i.e., employees and production process)
 Business/Economic impacts - the outer circle (i.e., the impact on the society and
environment)

Carroll’s pyramid of CSR

Be a good Do what is desired by Global stake

corporate citizen holders to improve life of society

3
Conduct business
Do Fig.
what1: The business in society
is just operations as a
and(source:
fair, avoidPinterest) guideline for the
harm future
Obey laws and Adhere to the laws and
 and the authorities

Make sensible
Be Profitable strategic business
International Business decisions

Fig 2: Carroll’s pyramid of CSR

Economic Responsibility
CSR is the type of commitment to the business to behave in an ethical manner and also
contribute highly in the overall economic development. The economic development can be
attaining by improving the workforce quality aspects and also manage the local communities of
the business. CSR helps TAKIMAKI to expand in the UK's international market, because the
concept of CSR helps the company's economic growth, thereby maintaining overall economic
development. A number of corporate social responsibility activities promote the sustainable
management of natural resources, which can maintain the company's appropriate economic
growth.

Legal Responsibility
One of the main issues of corporate social responsibility includes customer intervention and
taxation, which can manage the company’s overall economic growth, so that the organization
can easily sustain in the international market of UK. To expand the business internationally,
proper economic growth is too important and it manages overall aspects of the business and
reduce the possibility of failure in the current market. As TAKIMAKI works in the
manufacturing of electronic devices and it needs to expand business in UK so the company need
to maintain the proper economic growth for achieving better profits in the business (Brown-
Liburd and Zamora, 2015).

Ethical Responsibility
CSR is closely related to the environmental process and it needs to maintain environmental
growth in the business. As with international business, it is important to maintain environmental

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growth so that it does not affect the environment in business activities. Corporate social
responsibility is the concept that companies voluntarily incorporate social and environmental
issues into business operations and interact with stakeholders (Bromle and Meyer, 2015).
Environmental responsibility needs to maintain consumers, stakeholders and community. These
companies manage their operations to maintain competitiveness in environmental protection that
promotes consumer interest. The environmental aspects need to maintain the overall aspects of
the business (Zorzini, et al., 2015). The Company needs to maintain these factors in order to
achieve better business growth.

Philanthropic Responsibility
The other important factor related to CSR is social factor that is also related to one of the
important issues of CSR that is corporate governance and human rights (Legal) that manages
overall society of the business. The company needs to become socially responsible to increase
the positive effects and decreases the negative effects on society. For expanding the business, the
company needs to attain social growth in the society so the functions of business cannot give bad
impact on society (Khojastehpour, 2015). As TAKIMAKI works in the electronic devices so it is
important for them to maintain social aspects in the business.

The range of objectives and strategies

At present, the approach to an enhanced sustainability is based upon the integration of a series of
objectives which not only include those connected to economic performance, but also those
which are ethically-socially and environmentally linked. Obviously, each organization
participates in corporate social responsibility in its own way, which depends not only on its core
capabilities, resources and the interests of stakeholders, but also on the culture and traditions of
the company's location (Palazzi M., Starcher G., 2001 ).There are several objectives and
strategies that can be used to meet the overall aspects of these issues, which include not only
goals related to economic performance, but also goals related to ethics, society, and the
environment. This improves the overall growth of potential. Enterprises need to formulate
appropriate strategic plans to maximize profits, maximize sales, and maximize growth. CSR
helps to manage different aspects of business. TAKIMAKI needs to set different aspects and
objectives regarding the expansion in the international business. The CSR framework includes
economic, social and environmental benefits that meet all the needs of stakeholders. The concept

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of corporate social responsibility is generally based on safeguarding social and environmental

interests for proper business management (Crifo and Forget, 2015). Strategies to support the
maintenance of CSR include moral obligations, sustainability, license to operate and
management of reputation. These aspects maintain the overall benefits in the environment by
doing international expansion in the business. TAKIMAKI is an electronic device manufacturer
so it needs to maintain the overall sustainability to expand the business in UK.

Moral Obligation strategy needs to maintain stakeholders for the growing number of companies
that satisfied only when the balance needs to be maintained in its socially responsible practices.
TAKIMAKI maintains moral obligation by maintaining overall aspects of business in different
manner. By these strategies the business attains different process for getting expand in the
business process. CSR plays an important role in different aspects (Cao, 2017).

Companies pursuing sustainable strategies will not use short-term economic benefits from
environmentally destructive business practices because doing so will incur costs for future
generations. In other words, international companies pursuing sustainable development strategies
try to ensure that they will not accept or participate in situations that cause tragedies in the
commons. TAKIMAKI, as an electronics manufacturing company pursuing a sustainable
development strategy, will strive to reduce its carbon footprint (CO emissions), so it will not
contribute to global warming.

A company’s reputation and its ‘social license to operate’ (SLO) are two critical intangible
assets. Reputational risk has a number of commonly used definitions. “Reputation risk is
generally defined as the risk to the institution from changes of perceptions by key stakeholders,
including customers, investors, and regulators.” (Farha, Sekeris, Hermansson, 2017)

Social License to Operate meanwhile is commonly defined as broad social acceptance by the
local community and other stakeholders, most frequently, as ongoing acceptance.

It can also reduce the reputational harm to the company when negative events do occur because
they are likely to be more responsive and already be trusted. Conversely, the size or persistence
of reputational events can undermine an organization’s, or an entire industry’s, social license to
operate if not well managed.

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The company also needs to balance the various objectives that relates to balanced scorecard
approach and triple bottom line etc. Both of the objectives need to maintain the CSR aspects
(Bosch-Badia, et al., 2017). Triple bottom Line is a proper framework that maintains the
different aspects of CSR and this process recommend the company to focus on the social and
environmental concerns for the betterment of business. The three aspects include profit, people
and the planet. This is all depends on the various strategies of the business and it needs to
maintain overall aspects for the different manner. By this process, TAKIMAKI get several
benefits in the UK expansion (Yawar and Seuring, 2017). The other important objective is
related to the balance scorecard that help the company to manage overall strategies and also
analyse the different performance measures. By this process, company attains different strategic
objectives, measures and targets.

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References

Bosch-Badia, M.T., Montllor-Serrats, J. and Tarrazon-Rodon, M.A., 2017. Efficiency and

sustainability of CSR projects. Sustainability, 9(10), p.1714.

Bromley, P. and Meyer, J.W., 2015. Hyper-organization: Global organizational expansion.

Oxford University Press.

Brown-Liburd, H. and Zamora, V.L., 2015. The role of corporate social responsibility (CSR)
assurance in investors' judgments when managerial pay is explicitly tied to CSR
performance. Auditing: A Journal of Practice & Theory, 34(1), pp.75-96.

Cao, X., 2017. Corporate Social Responsibility. In Fair Development in China (pp. 119-134).
Springer, Cham.

Crifo, P. and Forget, V.D., 2015. The economics of corporate social responsibility: A firm ‐level
perspective survey. Journal of Economic Surveys, 29(1), pp.112-130.

Farha, R., Sekeris, E. and Hermansson, D., (2017). THE HIDDEN COST OF REPUTATION
RISK:an approach to quantifying reputation risk losses.

Joyner, B., Payne, D., & Rainborn, C. (2002). Building values, business ethics and corporate
social responsibility into the developing organization. Journal of Developmental
Entrepreneurship, 7(1), 113-132. Web.

Khojastehpour, M., 2015. How does corporate social responsibility avoid the incidence of
corruption in international expansion?. European Business Review.

Palazzi M., Starcher G. (Dec 2001), Corporate Social Responsibility and Business Success,
http://www.ebbf.org

Porter, M., & Kramer, M. (2013). Strategy and society; the link between competitive advantage
and corporate social responsibility. Harvard Business Review, 3(2), 1-17. Web.

Sharma, Anupam & Kiran Ravi. (2013): “Corporate Social Responsibility: Driving Forces and
Challenges.” International Journal of Business Research and Development 2.1 (p.18‐27).

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Yawar, S.A. and Seuring, S., 2017. Management of social issues in supply chains: a literature
review exploring social issues, actions and performance outcomes. Journal of Business
Ethics, 141(3), pp.621-643.

Zorzini, M., Hendry, L.C., Huq, F.A. and Stevenson, M., 2015. Socially responsible sourcing:
reviewing the literature and its use of theory. International Journal of Operations & Production
Management.