CSR Practices and Business Strategies

Question: Describe about the report of CSR Practices and Business Strategies? Answer: Executive Summary Issues associated with the CSR are quite important for the business. Different types of strategies are adopted by the company to increase the production activities. In this process, the management is encouraged to think about the safety of the staffs and implementing the rights strategies for increasing the safety measures for the environment. The steps taken by the company differs, however the prime objective is to introduce the best strategies for the company. Introduction Corporate social responsibility, which is also known, has the sustainable responsibility of the business plays a key role in explaining the best way to carry out the business performance. CSR is referred to as the self-regulated rules, through which the business model adopted by the company can be explained. The prime objective of the companies is to increase the profit earning margin by following the ethical standards, international norms, and safety measures for the employees. Thus, in some cases the companies go beyond the compliance procedure and implement an accurate action plan through which the required changes can be introduced by the company. Through this policy the company undertakes the responsibilities through which the corporate action plans needs to be introduced. This is done to impose positive environmental factors, which is considered to be essential for carrying out the operational activities. The security measures are imposed for taking care of the interest of the stakeholders, clients, and staffs (Giampalmi, 2004). Companies can help in improving the business practices to prevent recurrences of events Definition of CSR Corporate social responsibility is a term that is associated with the responsibilities that needs to be undertaken by the company towards the environment and the community. For this, the management has to postulate or introduce effective strategies for improving the safety measures within the company, monitor and control the wastages, contribute towards various social and educational programs, and introduce better means to earn returns on the employee resources. Such activities are quite important for the successful business conduct and improve the brand image for the organization (Gillis, Spring, 2001). It is essential to create share value system, through which the contends related to ideas and other factors associated with the business execution can be carried out. This includes sharing ideas related to the social welfare and social welfare factors. With the help of qualified and experienced workforce, sustainable resources, adherence to the government rules, and other factors it is possible for the company to introduce the best system for improving the production process. In this method, the company highly concentrates on developing and adopting the better methods for creating income and securing the community from any sort of harms. This is one of the reasons, the competitive advance and CSR has to be linked in the best possible manner. In this method, the company work towards introducing plans for achieving short term profitability and handling several issues associated with the social and environmental goals (Grossmanx, 2004). Carols Pyramid In Carols pyramid, the social tasks intended to be performed by the companies are classified into 4 different parts. The parts have been classified into different layers in order to improve the possibilities for earning better profits for the companies. Some of the important parts or layers are mentioned below a. Economic responsibilities - In this layer, the companies posits to follow the rules and laws framed by the government. It includes the rules drafted for the environmental and the consumer laws. The company is expected to protect the rights of the staffs, and provide the best possible services to the clients. Rules suggests with adopting the right process for improving the production activities needs to be introduced by the company. This will help in approaching maximum number of clients and increasing the sales. The health of the employees working with the company is an important factor, and the same needs to be effectively followed by the management (Hall, 2007). b. Legal responsibilities This layer basically concentrates on adopting the right procedure for improving the production activities. The tasks undertaken by the company has to be done legally. This will help in minimizing any sort of harm that is caused to the stakeholders, employees, clients, and environment of the com pany. c. Ethical responsibility In the ethical factors, the company follows transparent and ethical methods for increasing the performance and quality of the organization. In this process, the company intends to contribute towards the human resources and financial factors through which the quality of life can be improved. Companies are expected to support different types of community programs, educate people about the health and human services, arts, and others (Handy, 2002).d. Philanthropic responsibilities - In this layer the company concentrates on adopting and implementing strategies for being a good corporate citizen. In this case, the company work towards improving the quality of life of the people and other factors through which better services can be improved. The company is expected to perform different charitable tasks, which would benefit the community (Oskamp, S., Schultz, 2006). People, planet, and profit the three Ps for Bottom Line Company The 3P is associated with the business model, through which the companies can be encouraged to adopt the better methods for achieving the sustainable plan. Many companies have adopted the standards that have been defined under the triple bottom line. The term refers to the people, profit, and planet (Meyerson, 2001). People TBL argues about undertaking the responsibilities through which the operational activities for the company can be improved. Companies ensure to provide the best possible benefits to the staffs and the community through the business activities. Employees benefits are analyzed and the tasks are enforced by the human resource department of the company. The staffs of the company are entitled to provide the required compensation to the staffs in case of occurrence of any untoward incidence. In the similar manner, the management has to ensure that the right steps are taken to create a safe and positive work culture and environment for the staffs. This will improve the work ability of the members and increase the value (Hanson, Middleton, 2000). Planet In this case, the companies involved with different types of production activities undertake the corrective steps through which the harm to the environment can be minimized. This is done to reduce the negative impact to the business, and reduce on the operational activities. It is essential for the company to control the pollution that can impact the eco-system. The energy consumption factors are analyzed, as this will reduce the carbon emission caused to the environment. In fact, companies adopt different strategies for protecting the environment by introducing it in the suitable plan (Hartman et al., 2007). Profit Companies no longer work only to earn profit, as it was done earlier. In this case, the management analyzes different strategies through which the profit earning margin can be improved, without increasing the operational activities. In this case, the management attempt to adopt safe methods for increasing profit (Kennedy, 2007). Pros and cons of CSR The concept associated with The Runan Plaza incidence. Around 1134 people had lost their lives and more than 2500 people were injured. Prior to the occurrence of the incidence, many international leading companies had insisted to improve the security measures that were adopted by other companies. Such rules were exclusively regulated for poor and underdeveloped countries, where health and safety measures for the staffs were not followed. Garment industry in Bangladesh had become the biggest exporters to the USA and Europe. Issues associated with the ethical consumerism were questioned, as many leading names had imported clothes from Bangladesh. Thus, rules were drafted to introduce better methods for increasing the production activities, without causing harm to the environment. This also included improving the health and safety measures for the staffs, avoiding child labor, and other factors (Kambalame, deCleene, 2006). Benefits of CSR a. Costs Different types of programs has been introduced to reduce the cost for operations. This includes introducing better equipments, and handling the environmental factors(Joseph, 2002). b. Brand image Safe and reliable production activities, improves the brand image for the company (Hempel, Porges, 2004)c. Win trust of the stakeholders Through this process, it is possible for the company to win the confidence of the investors. d. Customer relation Through this method, the company can improve the quality of customer relationship, which is required for sustaining the tough competition. Disadvantage a. Monitor- It is quite a challenge to monitor the tasks performed by the outsourced companies. This is one of the most important factors, through which the management can introduce the required changes (Hulm, 2006). b. Analysis of costs- The cost for introducing new mechanism for production and sales can be expensive. This can affect the operational plan of the company. Research and evidence of ethical operational activities for ethical consumerism The ethical issues faced by Toyota have been included in this part. Toyota had faced lots of ethical problem, which had impacted the performance of the company. Some of the problem had affected the performance and goodwill of the organization. One of the major issues faced by the company was associated with the quality control procedure. The quality of some of the cars was considered not to be at par, and this had affected the sales and the production activities. Some of the problem faced by the company included poor floor mat, sticky gas pedals, acceleration issues, and others. This had caused lots of problem for the clients and had increased the number of accidents. The problem associated with the floor mat had caused the acceleration issues, which had affected the quality of the cars that were manufactured by the company. Management of the company had accepted the fact that the quality of the car was poor and had impacted the trust of the clients on the company. The company had al so faced ethical issues that were associated with the acceptance of the reasons for the poor quality of the cars manufactured by the company. In this case, the management felt the need to assure the clients about changing the quality of the car manufactured and reduce the untoward incidences (Husted, 2003). Issues associated with the environmental factors were also analyzed. In this method, the company took the best advantage of the globalization but the required changes for introducing the changes were not followed. This impacted the quality of the task and the steps that were intended to be implemented for improving the quality of production activities. Car manufacturing process had received a free trade pass, which encouraged the company to venture into new market. Due to this, the management of the company could increase the number of factories for carrying out the production activities. Such factors had caused an increase in the problem related to the climate change. Pollution due to the production and fumes had negatively impacted the climate of the environment (Ireland, 2007). Solutions In order to follow the rules that were stated under the CSR, the management of the company undertook drastic steps. This was done with an intention of increasing the quality of production activities, and winning the trust of the customers and the stakeholders. For this, the management of the company apologized to the clients and the stakeholders. Many cars that were sold to the clients were recalled. Such steps were taken to avert the accidents that were mainly caused due to the wrong or improper quality of production. In this process, the company analyzed the quality of the cars that were manufactured and introduce better steps for increasing the production activities. The management introduced an effective control system, through which the major issues associated with the control process could be handled (Jayne, 2004). In order to reduce on the issues associated with the environment, the company introduced eco-friendly production activities. This included manufacturing hybrid cars that required less fuel and would emit less pollution. Through such strategies, the management of the company attempted to approach maximum number of clients and increase the production activities. Management ensured to proved accurate information to the clients and the stakeholders. This was done to win the confidence of the embers and continue with the production activities, without any interruption (Jones, 2000). Conclusion Issues associated with the CSR factors are considered to be quite essential for the business management. Many companies ensure to improve the quality of the production activities and cause less impact to the environment. For this, it was necessary to introduce the best policies through which the production activities can be improved. The challenges involved with the process of executing the tasks associated with the production and impact to the environment were analyzed. Through such process the management attempted to adopt the best strategies through which the production activities could be improved. 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