Assignment – Corporate Social Responsibility

by Dan Collett

Task 1

Analyze the regularity framework for CSR (1.1)

Presentation of understanding the current CSR issues facing business in the current climate
involving negative reports from the press. Each below heading analyzing key areas of issues
and improvement needing implementation.

Behaving Responsibly – Within the organization it is paramount that all employees through
the organization and the company itself act according to the UK guidelines following the
correct procedures. These guidelines relate to aspects shown below.
Health and Safety – These issues consist of the organization implementing procedures and
guidelines to keep employees, customers and the community safe within the premises and
the local surroundings. These consist of work wear for employees, safety distancing
measures within controlled stations. Guidelines and procedures for our customers to follow
and security implementation for the local community. If this structure is not adhered to
their becomes negative feedback from all involved, which will damage the company’s
reputation. A prime example for a sports manufacturer is Safety Shoes within the
warehouse. These are essential and standard trainers are not acceptable. The company and
all employers must follow these guidelines.
Human Rights – Within the company it is important to look after your employees as in tern
they look after the company. If the conditions with the working environment are not
maintained at a high standard i.e. Lighting, Seating, Working Hours / Break Times, Wages,
Adequate Holidays, Employee support and treating everyone equal it will cause unrest.
These need to be carried onto customer and suppliers that may use the facilities on site
such as toiletries. Employment Legislation UK is in place for businesses to follow and keep
people safe. Keeping these regulations at a high standard will eliminate unrest and
negativity and in fact create a high level of working environment and generate a positive
outcome for management.
Environmental Protection – The environment (ISO14001) is a key standard that companies
must adhere to and employees must follow. The elements concentrate on reducing waste
and recycling what Is possible to benefit and protect the planet. Carbon emissions and
general rubbish can affect the company’s reputation internally, in the local community and
on a national front. Internal staff must follow the recycling procedures implemented. These
will allow for the local community to benefit from a clean manufacturing site and this status
will gain an overall national positive effect. It is the company’s responsibility to behave
correctly towards this and implement the required employee training.

Contributing to a better society (ISO26000)– It is essential that the company generates a

positive ethos for the internal and external society. The platform within an organization
needs to offer polices and regulations such as the above to ensure that the employees
follow the guidelines that allow a better atmosphere and working environment. When
employees appreciate their environment, this can transition onto the local community. The
company can get a good image from looking after their employees who will discuss the
benefits of working for the organization. When this happens, it can help with employment
(the local society want to work for you). It generates profit as revenue will increase from
customer wanting to shop from the product range. A key factor is that it gives managers
options to contribute more to the society. This can come in forms of charity work,
sponsorship or helping the local environment through ISO14001 guidelines this then can
make a transition into a national front.
If companies do not follow contributing to a better society the vision of the company is not
going in the right direction and the outcome will result in a negative effect.

Integrating social and environmental concerns to the business – Integrating these concerns
comes from management’s vision with the attribute of listening to their stakeholders. They
require their mission and values to be understood to enable a Ethical, Social and
environmentally friendly positive effect. The skills needed to build this environment must be
linked to the project running or structure of the company. If the skills needed to not suit,
people are not going to follow the concept. It is also important to build this strategy slowly
with the right staff, that is why recruitment is key and further training on the polices are
carried out. The integration of Health & Safety (45001) fits to the manufacturing
environment, however it is important that staff follow the procedures carried out and
training that is implemented is a fun exercise to ensure staff find it benefitable yet
enjoyable. When these regulations are implemented it is then important to ensure that
they are ran correctly and all Human Rights criteria is in place to safeguard employees and
have no unrest.
The Triple Bottom Line – People, Planet, Profit –
People + Planet = Social + Environmental Responsibility
Companies should be working simultaneously on these three bottom lines:

1. Profit: The traditional measure of corporate profit—the profit and loss (P&L)
account.
2. People: Measures how socially responsible an organization has been throughout its
operations.
3 . The Planet: Measures how environmentally responsible a firm has been. 2

By focusing on these three interrelated elements, triple-bottom-line reporting can be an

important tool to support a firm's sustainability goals. History has outlined that profit is the
key concept to a successful business, however, overtime it has become apparent that
people and the planet fuel a successful organisation to achieve that profit. In a
manufacturing company it is important to understand that the profit alone will not be
enough to be successful, the Social and environmental structure must meet the regulated
guidelines of Human Rights, Health & Safety, Law Legislation, Ethnic Values and
Environmental procedures.

4. Voluntary nature – CSR can have the question raised of are the regulations
mandatory or voluntary for the organization to follow. The Human Rights Act and
Legal Legislation UK polices are mandatory for companies to follow to ensure the
employees are not violated. It is also important that companies look at going beyond
the basic requirements. Organizations need to set a standard they wish to work to,
and this can be a decision they voluntary make. The UK government can offer
incentives for companies to be more environmentally friendly, however it is down to
the companies to make the final decision themselves to implement it. When
organizations go beyond the basics it builds reputation for wanting to help. This
reputation can grow and help companies build from a lower level rating to a much
higher both with internal employees and external stakeholders.
Analyze environmental issues in the CSR (1.2)

When it comes to CSR in terms of analyzing issues, these have developed in large scale over
the last few years. It is important for the organizations to understand their potential
negative effects of their running and what strategy needs to be implemented to improve the
environmental running of their projects. When reviewing a company that is manufacturing
sportswear, we need to look at the following elements.

Recycling Polices – Within the Environmental ISO14001 standard for companies to follow, it
highlights within the procedures the expectations of a company to recycle materials used
when running their day to day business. These policies can be implemented from the
canteen/office area through to the manufacturing of the product and finally the packaging
the items of delivered in. Waste landfill sites ask for waste to be delivered in a correct
manor. This could consist of bins for specific material. The company must provide these for
their staff to use while onsite. Any waste material should be collected and reused or
returned to the supplier, this can ensure waste does not rise and potential costs saved.
When it comes to delivering the product the use of recycled packaging is becoming more
recognized. For example, Trainers being delivered in recycled card shoe boxes can be a
welcomed transition for customers to see.
Following recycling polices enables stakeholders to see the vision the management of the
company are following and with the pressure of government legislation to abide by these it
is welcomed my many.
Use of Packaging – As stated above packaging of products is as important as ever. It is
essential that companies help reduce packaging or increase recycling measures. If a
customer orders multiple product then these can be consolidated into one consignment for
delivery. This will reduce carton waste and potential fuel emissions with couriers. Plastic is
being pushed out by environmental agencies to be replaced altogether and this must be
replaced with substitute materials. It is also important to look at the concept of when/if
products are returned. Many companies offer guidance on how to return products not
wanted by the consumer. This can help if the same packaging is used to ship back again
reducing waste packaging recycling the supplied.
Logistics of delivery Congestion/Carbon Footprint – With technological advances in retail and
purchasing products online, it has reduced consumer transportation to retail outlets helping
with Co2 emissions. This has however increased the level of couriers on the road and being
onsite at manufacturing depots. This has caused an increase of Co2 emissions in this area
due to the transport having less of a “Green” effect on the planet. It is important that
congestion of delivery of products is reviewed and scheduled this as will help the “Carbon
Footprint”. Reducing fuels being released into the atmosphere is an important part of the
environmental policy and monitoring these from a logistics point is a worthwhile exercise.
The following points can be discussed within management.
. Consolidate consignments
. Designated collection times
. Engines off while on site (Keeps local community Greener and happy)
. Selected specification of vehicle onsite (Greener Vehicle)
Following these principles can eliminate logistic congestion, reduce transportation, reduce
fuel emissions into the air and therefore help with the Carbon Footprint. These will increase
the reputation of the company and show an increase in CSR.
Pollution – Pollution is an important topic that must be taken seriously by the company.
They are responsible for implanting policies and procedures to all their employees to follow.
Pollution can come from an employee dropping litter on site, Toxins from manufacturing
chemicals running into nearby drains, gases from machinery into the air as well as noise
pollution. These can all effect the employees within the organisation and have a negative
effect on their mental and physical health. This then translates into the local community
with bad press and the final out from pollution in the negative effect on our planet. It is all
the stakeholders working together to eliminate the effect of pollution through training and
social working ethics that will implement a positive outcome.

Sustainability – When measures are put in place within the organization it is important to
measure the environmental trends over a period. The processes or measures implemented
will not have a quick fix on an organization. The positive outcome and data will build
overtime. If the company starts to cut pollution over a short period, it will have no long-
term effect on the wellbeing of the of employees and the local community. If the measures
are carried out over a period of two year you can analyze the effect of these measures and
will see the strategy is working in a positive manor. It also takes a period for employees,
customers and the community to see the benefits of new procedures. For example, if there
is noise pollution from the manufacturing site and the company aims to reduce this for the
local community, it will take time for the community to believe and trust this measure is
sustainable.

Economic and Political Issues – When you review a PESTELI analysis you will find that both
Political and Economic factors have an impact on the environment. These can be a district,
national or international concern.
It is important for companies to find the right balance between supporting their local
businesses as well as developing countries. On a social environmental level supporting the
local business has a positive effect on the employment in the surrounding area. It can
generate a positive environment and increase the possibility of living in a better comunity.
This is the same as supporting developing countries. Support can be given in the form of
buying materials from a poorer community/supplier. This will offer employment and
increase the economy within that region, offering a higher value of life again. The
environment surrounds everyone and therefore every business. It is our CSR to ensure
effort is put into looking after this.

PEST(ELI) analysis:

Political Economic

• Stage of business cycle

• Government type and stability
• Current and project economic growth,
• Freedom of press, rule of law and
inflation and interest rates
levels of bureaucracy and
• Unemployment and labour supply
corruption
• Labour costs
• Regulation and de-regulation trends
• Levels of disposable income and income
• Social and employment legislation
distribution
• Tax policy, and trade and tariff controls
• Impact of globalisation
• Environmental and consumer-
• Likely impact of technological or other
protection legislation
change on the economy
• Likely changes in the political
• Likely changes in the economic
environment
environment
Analyze social and community issues in CSR (1.3)

It Is important to understand the social and community issues surrounding the environment in which
a company operates. When companies acknowledge there are issues, they can work to either help
or support them. Below are topics that can build the reputation of a company if they support in this
area.

Employing socially disadvantaged and disabled people – Within all community’s there are classed by
(some people) as disadvantaged. This could be in terms of having a disability of physical or mental
condition. They could be from an economically poorer area of a district. They could also be racially
abused for their ethnic background. It is important that companies acknowledge that someone
classed as having a disadvantage can be a great asset. It is also important that businesses need to
employee muliti ethnic personal and have disability access within the organization to prevent the
company being liable for discrimination against the minority. Examples can be …

• Wheelchair access – Physical Disability – Still can carry out IT work roles
• Deaf/Dum – Speech Disability – Still can carry out physical or IT communication with support
• Poorer Economical Background – Lack in education – Be more driven to succeed with
support in training and apprenticeship programs.
• Different Race or Religion – No disability – Brings a multiethnic company

Sponsorship – Sponsorship is a great way to support the community. It gives another organization
additional help, as well builds high recognition of your own company in the local/working
environment. A prime example of effective sponsorship is that of a voluntary organization needing
help to operate. This could be a youth club helping keep young adults off the street. If the company
supports this scheme through sponsorship, it is helping the local community, generates a better
environment in the surrounding areas, can bring groups of people together and if the organization
get involved with the people it could result in employing the young adults. If they are employed,
they could be trustworthy and willing to work for you in a positive mind due to the support you have
shown them.

Encouraging education and training – Training and education is massive part of all working life. This
can be from initial apprenticeships straight from early education, through to building and developing
skills you already have. Companies can offer training as an incentive to work for the organization
especially if the company is funding the education/Training. Training may also be in the form of
learning attributes in terms of team building exercises. This strategy can help increase team morale
by increasing communication, which results in a more social environment to work in. Education is a
key life skill. It important that companies recognize this, through building the knowledge with their
internal working environment, which in turn carries through to the community and the world in
general.
Volunteering – Volunteering is a good strategy to improve social relationships internally and
externally. Volunteering is a method used to take part in a function or activity, that may involve
employees doing something they would not do in their organization. This is can be a good time to
develop new relationships with people they would not usually associate with. It is also a good
chance to discuss topics that may be of a concern and improve on a phycological basis. An example
of volunteering could be something as simple as designing a float at a local carnival. It involves
employees building relationships, as well as benefiting the local community giving a positive
environment.

Social Enterprise – A social enterprise is when a company puts profits back into the business to
improve social communications internally and in the local community environment (Or further
afield). The network that surrounds this strategy has the mission of making the world more
sustainable. Companies can be involved with this program to help support local businesses, build in
markets, improve the local environment and follow the The Social Vale Act implemented in January
2013.
Assess changing attitudes to CSR (1M1)

Opportunity for growth – Companies must not have a selfish attitude and concentrate on their own
desire of profit. This may work for a short period, however in the long rude the selfless attitude will
have a negative effect and become stagnant in the market or even lose custom. Companies need to
understand stand that CSR can change the attitude of employees, which will generate a greater
output of work within business. This rapport with the internal social advantage will increase the
image of the external stakeholders and offer a great opportunity for growth. Sports manufacturing
companies could have an employee that is involved with a local sports team. They could offer a free
kit and sponsorship. This could be welcomed by the staff and acknowledged by the local community.
The local community could then be willing to buy the company’s products due to the
acknowledgement in CSR, and this will offer growth.

Opportunity to engage with customers – Relationship with customers is essential in business,

without this a company will struggle to grow and survive. When opportunity arises, it is important
the company is willing to interact with current and potential customers. This can be as simple as
saying “Hello” in the street, being polite when a customer is making a purchase. Customers can
purchase a product and walk away thinking that was a good experience or bad. If it’s bad they may
not return. Engagement is important during this transaction. It is also important that management
understands when there is an opportunity to engage with customers. This could be in fair or carnival
environment, they could hold a stall, showcasing what is produced. Offer leaflets on how they can
support the local community through sponsorship and other strategies. These times must be acted
on to build their social engagement through CSR.

Committed Leadership – Leadership is an important factor in CSR internally and externally. Leaders
need to visible, heard and respected for the vision of the company to be reached. Leaders need to
understand many concepts that cover CSR to keep a balanced environment. These measures can
prove difficult, when adhering to multiple ethnic principles. Different religions, social backgrounds,
financial backgrounds all working together can prove challenge, as opinion can result in a bad
atmosphere. That is why all employees and additional stakeholders need to understand the
procedures and processes the company is run by, so all can follow on the same level. Leadership
must always be committed, or the result will prove negative and unrest will grow.

Opportunity for innovation – Implementing strategies to sustain CSR, can be a standard practice for
management and key figure heads. The traditional concepts such as donations and volunteering can
become pragmatic. It is important to keep alert and flexible to adapt in the ever-changing
environment. CSR can now come in the form of programs supporting companies to keep at the
highest level and to be part of format to grow in a responsible manner. These programs are there to
offer opportunity for organizations to keep developing their skill sets in CSR.
Analyze the success of a chosen organization in managing CSR Issues (1D1)

Auto Screws recently implemented a CSR strategy to an issue that effected, the organization, local
community and the world in general. During the COVID9 lockdown the company and its employees
needed to adapt to the situation presented. This same issue was affected the local community as
well. The director of Auto Screws wanted to help their employees as well as the community around
in the hometown. His strategy was to ask his employees and local town to run to raise money for the
NHS. He stated that every 1mile ran he would donate £10, until £10,000 was generated. Through
social media (Facebook) in less than 27hrs the target was reached and donated to the local hospital.
All abilities and ages took part in the strategy to improve the internal and external stakeholder’s
mental wellbeing.

This was done by using the power of running and support of all individuals to give a positive mindset.
The employees embraced being part of an organization that was willing to help in a time of need. All
employees took part along with family members and the team became an even closer, possibly
boosting the output of work. The local community embraced the organization, in donating to the
NHS and this helped build the reputation along with local media outlets writing articles on the
positive motion. The story was also welcomed through LinkedIn and there can possibly boost
revenue in the future through new custom.

Issues can arise overtime or overnight and it is the responsibility of the organization to ensure
employees are looked after. Auto Screws implemented a strategy to have a strong positive social
connection not just for their own direct employee the environment around them
Task 2

Access the benefits of CSR to employees (2.1)

Improving working conditions – Working conditions has a massive impact on the employees. The old
saying “a tidy workshop is a happy workshop” still is echoed today in those lines of work. If the
lighting is poor with no natural light or LED at minimum it can have a depressing effect on the work
force. If seating is not correct at working stations employees can be in discomfort, which could
develop into a medical condition and even legal cases through the Human Rights Act if not
addressed. Improving the working environment can lead to a greater output from the organization.
The reason for this is if the staff have good facilities to work in, they have better morale, and this
generates a good internal ethos. The respect is greater towards management, and this can follow on
to having a better all-round social demeanor within the team.

Reduced discrimination – CSR can reduce discrimination by catering for all Abilities, Sex’s and
Religions (to name a few). It is important the organization has a multi-ethnic mentality and
implements the correct management through embracing diversity within its employee base. This can
only be done by training, teaching and accepting different values. This vision must be accepted by all
staff to work and if successful the company will not be portrayed of discrimination towards a
minority. The staff will learn the importance of embracing different team members and the
community can come together to live as a multiple cultural, sexual and ability society.

Compliance with Legislation – Regulations of Compliance and Legislation policies are there to protect
the employee base and company in general. The general law is stated by the government and Acts
illustrated through them that can lead to fines and law actions if are not abided by. These help to
ensure companies look after their employees as well as protect themselves. It is also important that
companies then install the relevant compliance processes for employees to follow, these will also
aim you to safeguard the staff and protect them, which is a benefit. Health & Safety compliance is a
good example, due to the lawful agreement that is in place to look after the company as well as the
company supplying the correct requirements to ensure the safety of the staff.

Whistleblowing Policy – Although many may frown on this policy, it is important to an organization
and of great benefit to its employees. The concept Is to have personal who supply’s information of
illegal or unethical situation to higher management within an organization. These can supply data,
before the full scale of the issues becomes public and damages the company’s reputation or before a
member of staff is becomes the subject to physical or mental downfall.

Feel Good Factor – This concept is a simple as it sounds. Everyone wants to feel good and it is
important that a company’s CSR embrace this factor to ensure their employees feel the benefit of
this ethos. A Happy work force that feels good will only benefit the company with their work ethic
and increase output. Enhancing employees training to ensure they understand and feel their
knowledge of the product or service they are providing is at a high standard is important. This
benefits the employee in terms of having confidence in their environment, it also offers a benefit to
their colleagues as the whole team understands and works to the same principles. When a team has
a good interaction and communication skill base, they can offer a much higher level of service to the
consumer, and this generates o higher turnover and customer satisfaction. The feel-good factor as
stated can come in the terms of training, social activities and the working environment they are
given to carry out tasks.
Analyze the impact of CSR on the supply chain (2.2)

Ethics in production – The process of running a project or developing a product is the main concept
of an organization. The transition from the start to final delivery at the end customer is what ensures
the reputation of the company and builds a connection with consumers and future custom. This
transition needs to function in accordance with the correct policies and procedures to ensure every
factor complies with the regulations. Health of workers producing the part need to be ensured
through Human Rights. Environmental measures such as pollution and recycling need to in
accordance with correct standards and the communication and relationship with customers need to
embrace in a positive fashion. If the ethics are managed correctly turnover and profit will be
generated, and all stakeholders will be satisfied along with potential new customers acknowledging
the production ethics.

Responsible sourcing – When it comes to the supply chain it is important to understand that
supplier/sub – suppliers are just as important as the end customer. The reason for this is that
everyone within the supply chain is responsible for delivering the product. When sourcing takes
place, it is essential that the relationship is built with the outlook a sustainability and the social,
ethical and environmental vision of the organization is supported by the supplier base. If it is, they
can deliver a service all on the same level and end goal. If this is not established customers may have
concerns of the sourcing structure the company has, as well as questioning the stability of the
service presented. If a manufacturing company is sourcing materials from poorer country.
/economy, the price maybe extremely good in terms of generating a final profit with the end
consumer. This may however be blinded by the fact of the Human Rights Act being in validation by
child labor and poor working conditions. If this was true and the customer and community found
this out it would damage the organization reputation.

Reduced transport costs – The movement of a product or service is processed by transport. The
logistics of this needs to be reduced just like the Carbon footprint. Reducing the costs of transport is
a benefit to the company’s involved in the supply chain and has a massive impact on the
environmental procedures. Transport can be reduced by the service you use. For example, if you use
an Air forwarder (Plane) the price is going to be high, capacity maybe reduced, and air pollution is
going to be affected. When you compare this to sea shipments, the cost is far lower, it is easier to
consolidate shipments, however the Leadtime for delivery is a lot slower and there is risk of sea
pollution. These factors must be addressed by the organization to implement and plan the correct
logistic strategy. They must also consider how to adapt to certain customer requirements
responsibly. This could be in terms of using recycled packaging in transportation. This would be at a
reduced cost and recognized by the Environmental Acts as a good incentive towards CSR. If reduced
costs can be implemented the cost saving will have a knock-on effect, down the supply chain and
this can benefit the organization with future custom.

Reduced carbon footprint – The Carbon Footprint is a structure to reduce emissions generated that
harm the planet. Operations throughout the supply chain have an impact in this area and that it is
why it is important for organizations to work together with leading Environmental policies. Carbon
emissions when thought about initially come from fossil fuels that give energy in terms of heating,
running of machinery and providing transportation methods. The concepts that companies now
work to have gone beyond that. Protecting the planet and putting in measures to reduce harmful
effects is now an auditing request by many customers (ISO14001). It has also become a recognized
attribute in gaining more custom, due to a large percentage of society wanting to help reduce the
carbon footprint. If a leading customer is acknowledging the importance it will attract that consumer
audience. We have already discussed how reducing transport has a positive effect on emissions
within the environment, however in the working environment there are many more processes that
can be implemented.

- LED Lighting
- Solar Panels (Government off incentives to install)
- Electric Cars
- Bike to work schemes
- Work from home
- ZOOM meeting (Less travel)
- Recycling processes

If companies implement just a few points suggested within the Carbon Footprint criteria the knock-
on effect down the supply chain can instrumental regarding the CSR system.

Use of technology in supply chain management – Technology is designed to make processes easier
and function more smoothly within the organizations. Developments in accountancy systems such as
SAGE, which help financial departments transfer payments effortlessly and increase the speed of
transactions, which helps reduce time and increase productivity of sales. EDI scheduling systems
allow forecasts and orders to be processed at the click of a button and be visible for all the supply
chain to see with little or no communication. The technological advances of machinery are
developing continuously offering more output, at lower cost and greener running.

The world is now moving into a system where apps on phones are making the consumer supply
chain even easier to run. If a company is selling a product that is ran by a faster easier and cleaner
output, they can offer incentives on how to run that product or service by the click of a button on
their mobile phone. This again can be of a great benefit to the relationship. Management needs to
implement the correct strategy’s and correct technological advances to please the supplier and
consumer. These advances offer a better relationship and help develop future business and generate
potential new custom. It is important that technological advances generate the right about of
benefits to the supply chain without eradicating the personal communication touch, which can give
you a more passionate working relationship. There is a fine line between the right amount and too
much technology.
Explain how a CSR policy impacts on Senior Management Team and Business
performance (2.3)

Impacts of Business Performance as follows…

Improved Sales/Increased Profits – Senior management is responsible for generating sales and
increasing profits. The strategies implemented can have a positive or negative impact on the
relationship with the consumer market. This impact will not be down just to financial figures, as this
is always going to be questioned if there is an increase in product or service. Management oversee
making choices in terms of how the business is run and take responsibility for the CSR management.
The choice’s made are in terms of environmental requirements, recruitment, Team Building
exercises, Training etc. These factors generate the ethics within the working environment and if are
incorrect can damage the senior managements control of the organization, which will lead to a
downfall in running operations. This can lead to breakdown in relationships with other leading
company figure heads as well as other stakeholders including customers where profits and sales will
fall.

Conflicts of interest between stakeholders – Stakeholders are the commodities that structure the
running of an organization. It is important that there are no conflicts of interest between these
parties. Management need to ensure the vision of stakeholders is the same and no one has
alternative interest as this damage the CSR. If you have a stakeholder whose only objective is profit
and has no interest in social ethics, then there will be no sustainability within the organization. There
will be conflict that has a negative effect on business in terms of morale being low, personal
ambition will take over. Assets and turnover will fall out the outcome will be that consumers who
generate the final financial profit will buy elsewhere. It is important that strategies and mission of
the stakeholders collaborate and work together to meet all social requirements and values.

Competitive edge – It is important to be ambitious and have a goal as a front runner in a competitive
market. This vision allows stakeholders especially customers to be attracted to the company’s
products and service. The vision comes from management and leading figures within the
organization and can only be achieved by ensuring that social ethnics are valued. Internal members
and the customers constantly offer feedback to management and this must be evaluated to ensure
the company keeps offering a service that is better that competitors. Management need to
recognize what is needed and then implement these elements. If you review technological
incentives, they continue to give new and updated software to keep one step in front of a
competitor. For example, running machines are now linked to phones and watches. This data builds
a larger portfolio of the consumers fitness and the updated software may offer more in-depth
analysis giving an edge over rivals.
Impacts on Marketing Strategy as follows…

Ethical Polices – Companies can turn from market leaders to global minnows overnight if the ethnics
of the organization are not truthful and recognized as being positive to society. Marketing needs to
be clean and clear. When marketing you need to understand your consumer base, however it is
essential you do not discriminate against personal or other companies. Everyone is equal and
entitled to be involved. When looking at the supply chain you must evaluate marketing strategies, as
it can be more than one company that is involved in the final product and service, and if damage of
reputation through marketing comes into effect it could it can result in multiple sectors being hit
which would breakdown many relationships. If you review VW being a leading automotive producer
and possibly recognized as one of the cleanest. In 2015 VW were accused of an emissions scandal,
which in an era of when the world is pushing the Carbon Footprint did not bode well for the
Volkswagen reputation. The overnight reputation of VW fell massively, and stakeholders all were
affected. Luckily VW still have an instrumental marketing strategy and are still embraced by many as
a leading manufacturer. This is an example of a leading source however the concept is the same for
all organizations and they are responsible to ensure their market ethics are to requirements.

Brand differentiation – It is understood by market research that consumer base is enticed towards
brands that support CSR. This concept is simple, if a company helps and offers a good service to its
consumer, they will buy their product. “Apple” is a prime example of this, there name is on multiple
technological products and the service they run through these (example apps) help to make
customer satisfaction run a lot smoother in everyday like in many opinions. The concept is similar for
a local company who is known to look after their employees well. If as a local manufacturer who
volunteers in the local community, follows environmental guidelines and has a high standard of
human rights, people are going to want to work for your company/brand for that reputation.

Recognition of different cultures – As mentioned above it is important for management when

marketing not to discriminate against ability, Sex, Race, Culture to name a few. When reviewing
culture business need to ensure their product complies with certain needs of that consumer
audience or at least offer an alternative. It is also essential that marketing does not discriminate
against a certain culture and the ethics are in line with society. Example can be that of overseas
marketing where Kissing on TV is not aloud, wearing shoes inside, Bad language or not Wearing
appropriate clothing. If these are not recognized it can become bad publicity and hamper the image
of the organization.

Customers willingness to pay more for ethical products – A product with a strong ethical marketing
strategy will attract more consumers due to it offering a positive effect to the world we will live in.
Once a product or service is recognized by society as a leading product in terms of quality and
service, it has the potential to be a leading organization. With a high reputation management has
options on how to market the product and if they feel they can increase the cost to generate a
higher percentage of profit. Research states that consumers are happier to buy a product or service
with a higher ethical image at a higher cost. The reason for this is that the product is good in
application and fits their requirements, however it also makes the consumer feel they are supporting
a good cause. If you think of a brand like Nike, they are recognized as a top-quality organization who
meets the cultural needs of everyone, sponsors many events to support charities and is always in the
public eye.
Shareholders return on investment – Shareholders wish to see a return on investment and CSR can
support and increase this percentage. CSR is there to build customer base through being an
appealing and diverse strategy. CSR also makes running smoother and eliminates negativity and
issues surrounding a project or service, if these elements are structured according the business
performance will increase and generate a higher percentage of profit on the company’s output.

Impacts on Costs – CSR costs money to implement the right criteria to meet the social, ethical and
environmental needs of the world we live in. This may result in a short-term financial impact to
install the requirements needed; however, the objective is to ensure that strategies implemented
result in sustained reward for the organization. If a company invests in recycling policies such as
ISO14001, a company implements technological advances, a company implements training and
increases a better working environment the company becomes more appealing. When a company is
situated in its market at the higher end of the scale, the investment starts to transition into a
positive incline with sales increasing. This impact results in a return on the costs invested at the start
of the strategy. The outcome should then give the business a higher return on profit due to its
increased consumer base.
Assess the potential conflicts, which may arise between the needs and
expectations of different stakeholders (2M1)

Using profit for shareholder dividends and reinvestment – If an organization has more than one
shareholder there can a conflict of interest as there are two opinions and maybe visions with where
the company wants to head. Profit is welcomed by any organizations and is one of the main
purposes of a company. It is possible that one shareholder wants to reinvest the profit into the
organization, this maybe to help the organization grow and purchase new assets to increase
business output. This concept can be welcomed by stakeholders as it is showing the company it is
doing well financially, as well as showing they are prepared to invest in keeping the company current
and developing for the future. The alternative maybe that a shareholder feels they are entitled to a
return on the investment and this is welcomed for their hard work and commitment within their
investment. If shareholders take dividends it also highlights that the company is financially secure,
and the reinvestment is not needed at that time.

Disagreement over CSR approach – Different stakeholders will have different strategies they wish to
have implemented. This could be investing in different CSR approach. For example, a community
may want the noise of night shift workers to be reduced as it is causing problems for the local
environment. This however may not be a welcomed option for the owners due to them needing to
meet project deadlines for the customers, so the night shift Is needed. Customers may want more
technological advances form their supplier and if they do not receive, they may look at moving to a
competitor. The issue is the supplier may not have the finances to be able to invest and may not
have the skilled employees to implement and run the new technology without training. These
examples lead to disagreements in approach of the vision needed and can result in CSR issues.
Disagreement over chosen environmental/social areas supported – Stakeholders like the above CSR
approach will have a different in opinion regarding the what social and environmental areas are
supported. The stakeholders may all agree that there needs to a strong concept of support to help
grow the organizations reputation, however what sector this is may cause debates. For example
employees may feel they need more support in terms there working environment, the community
may feel that the company should offer more voluntary support to their local charities, customers
may feel the customer service needs investment and that the support is not of a high enough
standard. All stakeholders will want to be looked after, yet the shareholders will need to implement
the correct strategies to be able to financially develop and support the correct areas. Support is key
in CSR and if not carried out correctly will result in the loss of custom and management will come
under increasing pressure.
Task 3

Review the CSR policy of a specific business (3.1)

Please see below review of Akuma Sports Clothing CSR Policy.

Manufacturing – Akuma sports was founded in 2008 finding a niche in the UK market to offer a
bespoke high-quality sportswear, at completive price, in a quick turnaround at amateur and
professional levels. The concept sounds perfect, and in 12 years many would argue it is. In terms of
manufacturing they offer what the market requires affordable pricing with there standard range or
the custom-built package for specific custom requirements still at good cost. The versatility in
manufacturing made them a highly attractive brand for Professional Teams, Amateur teams and
even School Kit Wear. This aloud them to have a diverse responsibility in terms of their CSR. When
manufacturing for different levels within the customer range in helps bring CSR together. For
example, Professional teams wearing or being sponsored by Akuma may feel obliged to support
lower level teams or support school training as they are linked through Akuma. Akuma themselves
may feel that due to schools and amateur level sports wearing their products they feel they should
offer voluntary support at key events. This brings a community together, through being able to
manufacturer a product and offer a service for a variety of consumer base. The only thing that
Akuma need to consider when growing and developing is that they do not forget their roots of
business when founded. This would have a negative effect on the on the local community where
they began.

Financial Services – The services offered by Akuma are standard procedure paying online through
there website, which in the modern world is a great incentive to an individual consumer if they wish
not to travel to stores. There biggest incentive however is for team-based purchases. Discounts are
generated on bulk buys, and accounts given to companies that offer repeat orders. This can be
welcomed by customers who want to build a sustainable relationship with Akuma and be given
discounts on products as time passes. Akuma also realize that repeat custom is instant profit as no
resources in sales must be used up.

Hospitality – Akuma offer a range of hospitality benefits in different strategies. They support in
sponsorship functions at amateur sports levels in terms of tournaments and competitions. They are
also well known for there support in 7s Rugby where tournaments at high levels of supported
around the UK. They also donate merchandise and vouchers to multiple charity and Gala Balls
involving organizations around the UK every year. This is always welcomed by the consumers as they
have chance to benefit from this voluntary act. Akuma also support on a technological front through
Facebook, Twitter and Instagram, keeping their consumers updated with latest offers and
developing products. This is great way to communicate illustrate how the organization in wanting to
keep current in the market.
Retail – In terms of retail Akuma do not have a policy for “Brick and Mortar” retail stores. There
market is to offer a service through online shopping and in 2008 this concept was less popular,
however in the current market traditional retail is becoming less common with the influence of
online shopping. As young entrepreneurs the two brothers that formed the company had the vision
to supply the UK from a single manufacturing depot offering a short Leadtime of the highest quality.
This idea allowed them to have less worry of overheads in terms of multiple staff and bills in retail
shops.
Recommend changes to CSR policy to benefit different stakeholders (3.2)

Please see below the review of Akuma sport where possible or alternative organization “Fitness
Worx” a new franchise in the Sports Wear Industry where changes could/can be implemented that
would affect a variety of stakeholders.

Adapting Business practice – REF Akuma Sports – Business practice is always changing and therefore
company’s like Akuma need to adapt to their environment to stay ahead of competitors.
Shareholders need to keep thinking of ways to improve and implement strategies. It is important not
to be afraid of change as this can result in great gain for the organization and its product and service.
Adapting at this current time could be key to increased revenue, when fitness clothing and healthy
living is more popular than ever Akuma need to be working too offer something new and different in
the market.

Akuma will need to also adapt to new policies and requirements needed to fulfill regulations in
relation to environmentally friendly packaging and greener transportation methods. When CSR
responsibility is being pressed to support the carbon footprint this area will need to be reviewed
annually.

Ethical leadership – REF Fitness Worx – This company is relatively new, and a Gym based
organization who supply Sports/Gym clothing in addition. The concept is quite new and is still being
developed, however there are now 4 UK branches with an online store. The company uses social
media as a major role in their marketing strategy to gain follows, who then can be enticed to join
what they call there “FWXFamily”. An area they could improve on is costs for there products both in
terms of Gym Memberships and Clothing Brand to improve on there CSR. The cost of clothing is the
same as many high street brands who have earned this reputation as a high-quality outlet.
Consumers of FWX may feel that the prices are too high and are reluctant to spend these prices.
FWX could reduce these items to lower the % of profit on each item, yet possibly generate a high
turnover through more sales and gain a greater reputation. FWX likes to offer a lot of knowledge to
there customers through social media and the world of social media can be a great asset to
companies, however the content could be reduced and offer more detailed analysis of the product
or service and this would reduce the time needed by the consumer to watch the advertisement. This
could be welcomed by many. The Ethical leadership nobody can fault and as time goes on the
company will adapt and understand what the consumers require and how implementing the correct
strategies can continue to build on the business.

Ethics in production – REF Fitness Worx / Akuma - Running a company’s production must be focused
to ensure it does not damage the stakeholders linked to the organization. This means when
operations are in place, they follow procedures outlined by authorities and that of the consumers
request. Ethical polices to ensure Human Right Acts and the safety of the consumer must be in place.
For example, in the current situation around the world in relation to COVID19, the organization
needs to follow the government regulation to ensure CSR is fully carried out. Recommended actions
such as PPE, Distancing, Homeworking where possible will be a must to ensure that stakeholders are
satisfied that their safety is looked after. These actions will set an example in future months/years to
how consumers and other people linked to the company view organizations such as Akuma and
FWX. They will also need to continue to run the and build on recommended requirements from
other policies to ensure environmental aspects and social activities are kept at a high level. Adapting
in a new era of business will be hard, however always possible with a good work ethic and team
around a corporation.

Engaging in corporate philanthropy – REF Akuma - The above outlook will help in engaging in
Corporate Philanthropy by gaining a good image moving forward in new times. Akuma will be judged
on how they react under pressure to install a product and service safety. If they implement a
positive outlook Professional team’s will be willing to use their brand for sponsorship, school’s will
continue to use their brand for kit wear as they are advertising a good image to the next generation.
Akuma can also look at being able to hold voluntary or charitable events and maybe donate profit to
the NHS. The image surrounding these recommended actions could entice new stakeholders as well
as employees willing to put more effort into a company they respect. These actions if implemented
correctly by SMT will entice new custom due to the image associated with Akuma.

Codes of Conduct – Akuma/FWX - The above recommend actions will need to review and developed
into a Code of Conduct as this will clarify the new guidelines of the processes are installed. This will
be available to all stakeholders to understand what is required from the new programs introduced. It
will also help when internal and external audits are carried out that Akuma have actioned the new
regulations.
Assess the potential impact of changes in CSR business performance (3.3)

Enhanced public Image – Improvement in CSR management will build the companies public image in
a positive manor. Strategies implemented to improve on the current internal environment will be
appreciated by the employees and this can entice new staff if the environment is at a high level and
they are looked after by the company. If the company also employees a variety of abilities and
cultures the public image of the company will be recognized as a multicultural organization and can
help to attract new custom. If the organization also offers support towards charity or takes part in
voluntary work, this can help the profile of the company massively. The public image will grow, along
with gaining potential new stakeholders. CSR will always change the image of an organization and
this can happen very quickly. It is important for companies to stay current with the market they are
in and continue to implement any new regulations and programs required to ensure the image is at
the highest level to keep custom.

Increased sales/Profits – As stated above the CSR helps the image of the company and with this
consumer are willing to purchase their goods. The reputation of organizations has a trend and if
people are buying the product others will follow and therefore sales will increase. What is important
when changes are made is to entice new custom but even more important to keep the current
customers. Current customers use little resources up as they understand what the company
produces and already are confident of the product. These sales make the profit a lot higher. The
reason for this can be the good social relationship between the organization and its consumer.

Risk Management – When changes are made to the running of an organization it Is essential that
SMT evaluate the risks involved in that change or process. This review requires analysis of the
change itself, the risks involved within the change and who/what it can affect and then the
procedures implemented to ensure these risks are covered so there is no negative effect. For
example, if a company implements a night shift, they need to review how this change will affect the
community around them in terms of noise, pollution and travel. How the employees will feel if they
are expected to take part in the shift and if there will be enough profit in the project to cover the
additional overheads. These elements all are in result of change to a motion in the CSR process.

Competitive Edge – Shareholders and SMT aim to be front runners in the market they work in. As
stated above under “Enhanced Public Image” it is important to implement change to improve the
organization and not be afraid of adapting to give a competitive edge over others. Changes are
needed as the companies grow and the mission statement also needs to be reviewed so
stakeholders understand the direction in which the business is following.

Improved recruitment and retention of staff – Changing polices towards recruitment and retention of
staff can offer a valued insight into the ethics of an organization. Businesses have the power to
change attitudes within society if they employee multi-cultural and all ability staff. A multi ethical
work force can empower a community, which is an important skill and attribute to remember when
processing a recruitment procedure. SMT need to develop and adapt the strategy to improve their
recruitment as this will give a better output in work if the operatives are dedicated to the company’s
vision. It is also important to try to ensure the employee base they have is sustainable. Companies
that have a low turnover in staff always appear to be doing well with their CSR approach towards
looking after them staff. It shows employees feel looked after and that the company has a good
retention policy.

Increased costs / Increased prices – Within society there is always the element of inflation, the price
of certain materials when manufacturing increase and therefore the price of the product being
supplied may need to. This impact can then change the perception of the company if a customer is
not happy with the increase. They might not understand that the materials further down the supply
chain have risen, therefore the company is just trying to make more money. You may have staff
wanting pay rises as a competitor pays more per hour, however your company can’t afford the
additional salary. There mentality to work may change and result in less output from them. The costs
of producing and supplying will vary depending on resources and the market it operates in. These
changes will always have a positive or negative effect on CSR. The SMT must implement strategies to
gain a positive outcome in another area when costs increase in others this can help balance out the
relationships with all stakeholders.
Assess the extent of voluntarism CSR (3D1)

Response to pressure groups – Pressure groups can be the result of multiple organization forming to
create a confederation such as the CBI (Confederation of British Industry) or that of a single
company. There purpose is to persuade organizations to follow or support their outlook to certain
topics/topic. This pressure could be in the form of calls, leaflets, letters of legal persuasion
depending on the nature of the topic. The pressure could be that of environmental, consumer or
social outlook. For example, if a development agency wishes to buy your land where your
manufacturer a product, they might start by asking you to sell verbally, this may then result in letters
being sent applying more pressure. The developer (if large scale) could even apply more legal
pressure, and this has been seen in the HS2 project, where organizations have lost their site due to
government power obtaining the land.

Effectiveness of voluntary practice – The process can be effective in the right manor, as many
corporations are trying to improve the working strategy to generate a positive outcome in a certain
area, whether this be Environmentally, Social etc. If we look at the Environmental policy, the
purpose is to get companies to produce a product or service in a cleaner way to help the world we
live in. This method could be in the form of recycling, cutting noise or air pollution, if the right
amount of pressure is applied. Correct training and incentives to help companies understand that
adapting to this policy could generate increased revenue and improve Corporate Image would deem
the practice worthwhile.