Symbiosis Institute of Business Management,

Hyderabad

Written Analysis of Case

on

The Truth about CSR

Name of the Faculty Dr. Sripathi Kalvakolanu

Course Corporate Social Responsibility
Semester - III Batch of 2021-23 Sec A
Submission Date 15-10-2022
Submitted By Anubhav Singh Tomar
(21021141026)

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Introduction

The article asserts on the underlying qualities of corporate social responsibility (CSR)
initiatives, their goals, and their significance to firms. The writers say at the outset that CSR is
primarily concerned with contributing to the well-being of the societies in which a business
operates. However, many businesses believe that any company activity, including CSR, should
produce real economic consequences such as greater profit. As a result of such an approach,
the quality of CSR operations deteriorates and their goals are not fully realized. The authors
propose shifting the emphasis from commercial performance to societal value. This will ensure
that CSR is more effective on a large scale and in the long run.

CRS strategy and work analysis showed significant CSR flaws in diverse firms. The authors
believe that the main shortcoming is a lack of coordination of CSR programs and activities.
CSR is sometimes managed by different managers in different departments who report to
different supervisors and are usually removed from the CEO. It is advised that the CEO unite,
coordinate, and supervise the actions of these managers. At the start of any reorganization, it
is critical to analyze everything a firm’s CSR performance is divided into three sections, or
"theatres."

• Theater 1: Philanthropy is the focus of Theater One. This theater's programs are not
intended to generate money or directly boost corporate performance. Donations of money
or equipment to civic organizations are examples, as is participation in community
initiatives and support for employee volunteering.

• Theater 2: It is all about increasing operational effectiveness. Programs in this theatre

work inside existing business structures to provide social or environmental benefits that
complement a company's activities along the value chain, frequently boosting efficiency
and effectiveness. As a result, they may, but do not always, boost income, decrease costs,
or both. Sustainability measures that minimize resource consumption, waste, or
emissions, which may lower costs; and investments in employee working conditions,
health care, or education, which may increase productivity, retention, and business
reputation are examples.

• Theater 3: It is all about changing the company model. Programs in this theatre develop
new business models to address social or environmental issues. Improved business
performance—a prerequisite for activities in this theater—is contingent on achieving
social or environmental outcomes.

In today's environment, it is critical that large organizations behave ethically in order to keep
society pleased. This could take the shape of community service or other similar work. A
corporation that appreciates the value of CSR and implements it can benefit not only the
company's reputation, but also financially, which leads to the concept of alignment. Everything
in a corporation's decision-making process is linked, and CSR is no exception. The writers

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explain this in the perspective of real-world business. This form of interconnection is one of
the main concepts in this essay and will also play an important role in the evaluation of this
articles.

Case summary

The authors make a significant point at the beginning of the paper when they note, "they have
discovered that CSR programmes are typically originated and handled in an uncoordinated
manner by a range of internal managers, frequently without the active engagement of the CEO."
This demonstrates that when corporations initiate the CSR process, the absence of coordination
within the company makes any implementation impossible.

It also demonstrates how important it is for a company's CEO to be active, even in the most
basic operational components, because it can be the difference between a program/idea like
CSR succeeding or failing. According to the authors, the goal of CSR is "to match a company's
social and environmental actions with its corporate purpose and values." In other words, a
company's principles should be upheld during the decision-making process. This leads to the
belief that, despite the fact that CSR is widely recognized as a crucial component of the
corporate world, many businesses ignore it. Furthermore, the authors go into great depth on the
three categories into which they divide CSR. The categories are referred to as "theatres," and
they include "philanthropy," "increasing operational effectiveness," and "transforming the
business model." These categories comprise CSR, and the authors believe they are critical to
achieving the goal.

The authors use these three categories to demonstrate that they are connected, even if it appears
that they are not. The writers emphasize the importance of preserving each of these categories
because they are interconnected. In this article, the concept of CSR is significantly more
complex than simply acting in accordance with one's beliefs and values. There are numerous
crucial categories and processes that must not be overlooked, and by adhering to and
comprehending these, a well-functioning corporation can be produced.

Evaluation

The authors are able to organize their thoughts in a way that helps the reader grasp the notion
of CSR better by dividing the essay into three major areas. This feeling of organization is
incorporated simply in the framework of the article as a whole, and with this connection, the
essential notion of the essay is disclosed, which emphasizes that the firm as a whole must be
involved in CSR. There were certain portions of the article that I had to read over to properly
comprehend what the authors were trying to communicate, which is to be anticipated in a CSR
discussion, but generally, the piece was quite interesting and influential.

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The only time I can tie the concept of CSR to my personal life is when I was in a high school
leadership club. It was very important in this group not only to be involved in raising money
for various events, but also to help the members of the organization understand the motive and
thought behind what the organization stood for, not just to create a good reputation, but also to
help the organization function better in any way possible. Another aspect that is directly related
is the necessity for an organized form of operation that involves all members of a corporation,
which was done in this case by the leadership group I was a part of. Things would not work
well if upper-level members of the group, such as the president, were not active. In many
aspects, this leadership group resembled a firm, and I believe it is an excellent illustration of
CSR.

IKEA’s CSR

1. IKEA Group operates 422 outlets in 50 markets worldwide. IKEA's Corporate Social
Responsibility (CSR) operations are overseen by Lena PrippKovac, Chief
Sustainability Officer. Furthermore, every country's retail managers are also Corporate
Sustainability Officers (CSO). Beginning in 2012, the home improvement and
furnishing firm began researching CSR reports under the banner People & Planet
Positive.

2. IKEA's CSR efforts and activities include assisting local communities, training and
empowering employees, and tackling gender equality and diversity within the firm.
Furthermore, the worldwide furniture retailer is working to cut its energy consumption
and obtain energy from alternate sources. Sustainable sourcing is another CSR problem
that IKEA intends to address within the scope of its activities.

3. More than 37,000 welcome backpacks stocked with toys and other things for
children will be prepared by Save the Children.

4. IKEA has planted one million trees in communities throughout the United States.

5. IKEA has implemented a new hourly wage structure that prioritises employee needs
over market requirements.

6. The furniture store has introduced My Learning, an online system that gives face-to-
face and digital learning options to employees at all levels.

7. The furniture store has introduced My Learning, an online system that gives employees
at all levels access to face-to-face and digital learning solutions.

8. IKEA's climate footprint in FY21 was 26.2 million tonnes of CO2, a 5.8 percent drop
in absolute terms from our FY16 baseline.

9. Approximately 60% of the products supplied by the furniture retailer are made from
renewable materials, with the remaining 10% made from recycled materials. By 2030,
the retail behemoth hopes to employ only renewable and recyclable materials.

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Conclusion

This article is an excellent source of evidence demonstrating the significance of corporate

social responsibility (CSR). The way the company functions is determined by how CSR is
applied, and "The Truth About CSR" reveals what it takes for a firm to effectively sustain CSR.
Based on this article, there are numerous ways to continue researching CSR, including
exploring different firms and asking them specifics on how they maintain CSR. By taking that
step, we will be able to monitor how many organisations employ CSR in their everyday
operations, as well as measure their use based on their yearly success rate. This is simply one
approach for determining whether or not CSR is as significant as the article suggests.