Case Study on Strategies of Social Responsiveness

There is a notion that organizations should maintain some corporate social

responsibility. Social Responsiveness refers to the capability of the organizations to
respond to social pressure, the manner in which it does so, and there are four possible
strategies of social responsiveness: Reaction, Defence, Accommodation, and Pro
action. This assignment is based on two case studies, where I try to identify two
organization's social responsiveness strategies under different circumstances.s

Discussion: After the Rana Plaza incidents happened in 2013, various pressure groups
(A pressure group is an organization that seeks to influence government policies
through protests and demonstrations) around the world became very active regarding
workplace social and environmental standards. Filing a lawsuit against Auchan, one
of the leading supermarkets of France, was an example of it. Though Auchan denied
the allegation saying concealed subcontracting issue, they ensured further
improvement in a future order.
In my opinion, in this Auchan lawsuit case, the organization applied two strategies of
social responsiveness, Reaction, and Pro action.
The company denied allegations and didn't take any responsibilities by saying they
didn't place any order in Bangladesh directly and subcontracting is prevalent
terminology in the garment sector. Their supplier company might place the order in
Bangladesh, but Auchan was not aware and involved in direct garments export from
Rana Plaza, Bangladesh. This is the scenario of a reaction strategy where the
organization/corporation (Auchan) denies any responsibilities/allegations.
But later, Auchan ensured they would take essential steps in future contracts, which
included signing the "Fire and Safety Agreement" targeting at improving safety
measures in Bangladesh's garment factories. This is the situation of Pro action where
the organization go beyond industry norms and anticipates future expectation by
doing more than expected.
If I think the Bangladesh garment industry's point of view, Auchan took the right
decision by choosing the Pro action strategy because it helps to build an appropriate
social and environmental standard in garment industries in Bangladesh. "Fire and
safety agreement" ensures all the garment factories from where Auchan takings cloths
they have to maintain a certain workplace environment standard. Not only Auchan,
different companies around the world, such as Primark, Loblaw, Bonmarche, etc.
taken steps aiming to improve safety measures in Bangladesh's garment factories.
So undoubtedly, Auchan's pro-action strategy helped Bangladesh improving
workplace safety standards. Along with Auchan, they retrieved their lost reputation of
commitment to social and environmental standards in its supply chain. Now Auchan
is one of the world's largest retailers company with a direct presence in France, Italy,
Spain, Luxembourg, Poland, Romania, Hungary, Portugal, China, and Taiwan.
Discussion: At first, Coca-Cola Co. tried the 'Reaction' strategy by denying any
allegations but then realized it impacts their overall business growth. For example,
Coke's stock price had slipped drastically after filing the lawsuit. So finally, they
agreed to settle allegations by adopting the 'Accommodation' strategy. This case
completely fits under the Accommodation strategy

Accommodation strategy is the strategy where the corporation/organization accepts

the responsibility/obligation and does what is demanded of it by relevant
groups/individuals. A willing company does not attempt to hide its actions and
remains open about why it takes specific steps. For example, pay its employees a
fair wage. The company would keep its records available to the public. Though
these companies are often socially responsible, they may change their policies in
response to criticism.
'Coca Cola racial bias case 2000' is the perfect example of an Accommodation
strategy where the corporation Coca Cola accepts its responsibilities and agrees to pay
$192.5 million to settle allegations and they also agreed to allow an outside Task
Force group enforcement powers reviewed and monitored the firm's employment
practices.

I think Coca Cola adopted the best strategy because denying the allegation caused
enormous damage to Coca Cola earlier, but when they accept the accommodation
strategy situation changed. And also, if they adopted a defense strategy by admitting
the responsibly but denying any settlement, it will create a further problem, for
example, a dissatisfied workforce.

According to Taskforce, in 2006, Coca Cola made significant progress, and also now,
they hold one of the top diversified workforces around the world. This
accommodation strategy brings several changes in Coca Cola management hierarchy;
this helped to brings individual talents and experiences in suggesting ideas that are
flexible in adapting to fluctuating markets and customer demands for Coca Cola Co.
Summary: