Corporate Social Responsibility

Introduction

Corporations around the globe have a grown interest of using different aspects that
have a good reflection on the contemporary life. The legitimacy of business considered clean
and uncontroversial expectations that require institution of responsible practices. As a result,
the corporations have business models that internalize and manage externalities, align the
economic and social responsibilities as well as setting values in their financial sector that
scrutinizes on stakeholder orientation, objectives and the practices. Corporate Social
Responsibility (CSR) for an organization has therefore been a management idea for
companies which comprise of decision-making process that the global business community
has adopted on ensuring that their set objectives and targets are met. For instance, CSR as an
approach utilized in the global business community provides a guideline n management,
marketing, accounting and financing as an ideology of influencing the decisions or the
workforce and the stakeholders in attaining the set goals and objectives.

Values at a business require having guidelines and regulations which do not

discriminate the cultural perspectives of individuals hence the concern is about work
responsibility basing on people’s values and beliefs. A company working to fulfil its goals
and those of the consumers has to build on good relationship with everyone as this creates an
obligation utilized by leaders to ensure that the set guidelines and regulations are followed
hence moral responsibilities. In this case, humane working conditions influence an approach
that ensure there is a successful organization in terms of sustainability and transparency of
approach that sustains about building on strengths and opportunities while minimizing risks
hence delineation of essential qualities on sustainability and profitability of an organization.
As a result, the aspects of having justice and democratic and sustainable business practices
aids in compliance to competitive advantage.

CSR addresses leadership competence which forms a layout of commitment,

decision-making process and the required action s that an organization or government utilizes
for stability development. The approach utilizes the following six core characteristics:

Voluntary
 Corporate social responsibility represent a business or a government’s that is
aggressive and effective in bringing a strategic approach on utilization of opportunity,
innovation and competitive advantage (Crane, Matten, & Spence, 2013). The use of CSR is
not entirely voluntary but companies and public responses utilize the approach of
demonstration of social sensitivity ad emphasis on legal measures as well as self-regulations.
For instance, CSR orient to utilization of constructive influence and practical guide of
acquiescence of the societal moral norms. In this case, voluntarism mandates on maximizing
on the sustainability index that attribute to achievement of set objectives. The sustainability
index determines the right choice that are influential and on doing the right thing that targets
profitability of a company and the government in return. (Hughes & O’Neil, 2008). CSR as a
result complies with business operations and strategies creates the voluntary willingness on
justification of company’s image, strengthening of the brand as well elevation of the morale
in attaining the set organizational objectives.

Corporate social responsibility integration promotes the welfare of a government or a

company which is deemed valuable in utilization of the available limited resources. The
approach responds to justification of values that increase in decision-making aiming at
earning of competitive advantages. According to Ahmad, Murtala and Bashiru, 2014 a
corporation investment requires a framework for understanding and developing basic
principles that promote company’s interests and the social welfare. CSR is therefore
important in meeting the ethical objectives which articulate with competitive advantage. CSR
additionally helps in determining how resources can be allocated hence a measure of dynamic
competence and strategic orientation to basis of economic pyramid. The orientation results in
willingness to adhere to a dependent voluntary dimension that is course-related to marketing
for profitability within legal and self-regulatory framework

Internalizing and managing externalities

Externalities in a business environment determine the involvement of stakeholders in

decision-making process. Achieving sustainability and ensuring that responsibility adhered
to positive economic behaviour requires an account to a firm’s decision-making process. The
adoption of strategies for managing externalities require investment in positive approaches
such as improved clean technologies that prevent negative effects to the environment. A
company is therefore required to develop meaningful metrics that pose an advantage to the
community. Prevention of violation at workplaces, calculation of social and economic
impacts of polices at a form as well as the effects of products on human health are some of
factors of consideration incorporated in the CSR approach for a strategic orientation that is
inclusive of best practices. Businesses and governments therefore ensure that there is
externalities management to support laid frameworks of profitability.

Externalities management goes well with improved technology as well as creation of

shareholder value. The CSR tool characteristic ensures that there are sage measures that
provides legitimate plans which helps in achieving strategic goals of sustainability. The CSR
initiative therefore facilitates customer data management and operational platform for the
customers hence incorporation of aspects of market segmentation, analysis and forecast of the
required of customer satisfaction which aim at improving the performance of the business.
Additionally, internalizing and managing externalities facilitates building of good customer
relationship that ensures that the business operates as a unit hence integration of customer
satisfaction to retention and provision of increased revenue to the government (Korschun,
Bhattacharya, & Swain, 2014). As a result, technology is important in aligning the goals of an
organization that strategize because of CSR. The initiative of CSR under management of
externalities therefore prompt managers and involved parties towards development
propositions that impact on the decision-making process from the stakeholder’s contribution.

Multiple Stakeholder orientation

The orientation of stakeholders in a business helps in definition of power, legitimacy

as well as legitimacy of claim and urgency. Stakeholders contributes directly or indirectly to
the success of a business since they contribute to the bottom-line result (Cheng, Ioannou &
Serafeim, 2014). The contribution accompanies ability to produce ideas that help in decision-
making therefore a determination of sustainability and transparency of approaches to the
identification and prioritization of key internal preparations and leadership. As a result,
stakeholders’ orientation as a CSR characteristics determines how marketing, communication
and resource utilization is done hence a collective bargain in terms of business industrial
relations. Additionally, multiple stakeholder orientation determines the realistic level of
information adequacy about crisis and risk management. In this case, the approach therefore
helps a business or the government to implement suitable techniques that reflect their
performance hence minimal occurrence of errors.
 The success of a business relies on stakeholder’s ability to work together and fulfil the
needs, the consumers have different interests and multiple stakeholder orientation helps in
consideration of diversity which is an attribute to the success of a business (Hughes &
O’Neil, 2008). Governments for instance depend on consumer, employees, suppliers and the
local community as stakeholders for its ability to experience economic competitiveness. The
effectiveness of having stakeholders helps in formulation of visions and objectives of a firm
hence definition of the directions on the ways of achieving the goals in the light of significant
internal and external circumstances (Nazeer, 2011). Stakeholders therefore take part in
business actions that helps in attaining of sustainability. As a result, utilization of multiple
stakeholder orientation helps in provides a platform of setting priorities right in order to
improve performance and achieve set objectives.

Alignment of social and economic responsibilities

Alignment of social and economic responsibilities starts with understanding the

welfare and interests of a community. The social and economic responsibilities of a firm
depends on moral principles that arise in a business environment (Jones, Mackey, & Whetten,
2014). Culture for instance in a business environment requires understanding of traditions,
customs, and beliefs that apply to the aspect of the conduct of individuals in an organization.
Aligning social and economic responsibilities reflects on the philosophy of a business for
acquiring its fundamental objectives therefore influencing how a higher market position and
economic growth can be obtained. As a result, the management has to uphold the principles
of social responsibility as an obligation to maximizing returns in fulfilling the set objectives.
The parties involved strives to achieve objectives by applying ethics and cultural values
entitled to the liabilities of the consumers as a form of social responsibility.

Aligning social and economic responsibilities requires understanding of ethics and

culture of an organization. The association of any business enterprise and the government
with stakeholders, and their management devour to strategies that enables upholding of a
strong moral compass (Petrenko, Aime, Ridge & Hill, 2016). Social responsibility being the
forefront for economic benefits should involve evaluation of the values, norms, and
behaviour of an organization. Cultural assessment as an example, requires development and
understanding of the value of moral values in a working environment. As a result, ethics and
culture relationship reflects on social responsibility which determines the activities and the
setup of strategies in attaining its objectives. Ethics and culture describe the outline of social
responsibility of an organization, therefore, a requirement for supporting economic and social
responsibilities as an aspect of CSR in acquaintance of designed objectives and goals
(Zakhem & Palmer, 2012). The values of morality guide the leaders and managers on making
alterations that produce a general positive impact on the society.

Practices and Values

There is increased globalization which has influences changes in the market

orientation. Practices and values incorporation into a business embraces focus on values and
beliefs that target at productivity hence a better performance of a company. Every business
has a culture which is collective to practices and values that define the traditions of the
workplace (Kolk, 2016). The perspective of CSR therefore utilizes CSR to address positive
behaviour and positivity that provides a wider dimension of the concept of relationship
building. The relationship between a business and the consumers because of positive
behaviour and attitude is essential as it attributes to acquiring of objectives. A healthy
relationship of a company with other parties allows development of strategies that govern the
practices and value son the need to work on fulfilling their objectives. Consumers become
satisfied while the organization attains its objectives which is the basis of CSR.

Practices and values influence an initiative that creates motivation in a working

environment. Motivation is an important factor of business success as it focuses and delights
on the workforce to influence positive decision-making and delights (Eding & Scholtens,
2017). Addressing practices and values by adopting motivation as factor helps in understating
different interest of the company as well as the workforce. As a result, an organization acts on
the credibility and authenticity of the practices and values which allows the management
work in strict environmental targets that cover their impact on performance. The utilization of
CSR strategies results in benefits that facilitates the company to reach its set ambitious target.
Strategizing on cultural norms based on traditions and beliefs of an organization helps in
acquiring a company’s best interests as well as that of the business. Addressing practices and
values of an organization helps in creation of standards and principles of professionalism
which contributes to the activities that define the ethics of the organization, stakeholders, and
consumers.

Beyond Philanthropy
 Going beyond philanthropy allows enterprises to show their visibility to the need of
individuals in the society. The CSR characteristic ability shows the worthiness of a company
which improves the portrayal in the global market. Beyond philanthropy minimizes the
haziness that surrounds firms because of negative feedbacks from the society. Social
responsibility boosts a company’s profitability and prevents individual stakeholders from
deciding how they should dispose their funds. As a result, a company may channel its funds
with an aim of improving performance of firm hence in return there is increased productivity.
The charitable contributions boosts the morale of employees, the community around as well
as customers hence a reflection of successfulness of the firms in terms of competitive
advantage (Grayson & Hodges, 2017). Corporate philanthropy is a therefore a CSR
characteristic approach that promotes economic value of a company as well as the
community around.

Business is usually a legal entity and the management requires to give back to the
society. Setting up a business is important as it provides employment, capital investment by
which the government gains its revenue from and this results in a profound positive influence
to the community. Philanthropy is therefore based on creating a difference in the society
which is an initiative that characterizes the utilisation of CSR by a firm. Beyond philanthropy
characteristic indicates the generosity of a company for the society with results in market
share gains, promotion of business promotions and differentiation of products and services
(Petrenko, Aime, Ridge, & Hill, 2016). Corporate contributions in terms of philanthropy aims
at creating changes in the community in terms of improving economic and environmental
conditions.

References

Ahmad, A.H., Murtala, I., & Bashiru, D. (2014) Exploring the Roles of Stakeholder
Engagement and Stakeholder Management in CSR Practice, Australian Journal of
Business and Management Research, Vol.4 No.5, pp. 1-8
Cheng, B., Ioannou, I., & Serafeim, G. (2014). Corporate social responsibility and access to
finance. Strategic management journal, 35(1), 1-23.

Crane, A., Matten, D., & Spence, L. J. (2013). Corporate social responsibility in a global
context. Chapter in: Crane, A., Matten, D., and Spence, LJ,'Corporate Social
Responsibility: Readings and Cases in a Global Context, 2, 3-26.
Eding, E., & Scholtens, B. (2017). Corporate social responsibility and shareholder
proposals. Corporate Social Responsibility and Environmental Management, 24(6),
648-660.

Grayson, D., & Hodges, A. (2017). Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.

Jones Christensen, L., Mackey, A., & Whetten, D. (2014). Taking responsibility for corporate
social responsibility: The role of leaders in creating, implementing, sustaining, or
avoiding socially responsible firm behaviors. Academy of Management
Perspectives, 28(2), 164-178.

Kolk, A. (2016). The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business, 51(1),
23-34.

Korschun, D., Bhattacharya, C. B., & Swain, S. D. (2014). Corporate social responsibility,
customer orientation, and the job performance of frontline employees. Journal of
Marketing, 78(3), 20-37.

Nazeer, S. (2011). The competitive advantage of corporate philanthropy (Doctoral

dissertation, University of Pretoria).

Petrenko, O. V., Aime, F., Ridge, J., & Hill, A. (2016). Corporate social responsibility or
CEO narcissism? CSR motivations and organizational performance. Strategic
Management Journal, 37(2), 262-279.

Zakhem, Abe & Palmer, D. (2012). Managing for Ethical _ Organizational Integrity:
Principles and Good, Right, and Virtuous Conduct, Business Expert Press. ProQuest
Ebook Central, http://ebookcentral.proquest.com/lib/rmit/detail.action?docID

Hughes, O. E., & O'Neill, D. (2008). Business, government and globalization. Macmillan

International Higher Education.