Corporate Social Responsibility

Question: Describe the role of corporate social responsibility, their benefits and steps taken by the organisation to reduce their carbon footprint. Answer: Introduction In todays competitive business environment, organisation are using various resources to build products that is unknowingly hampering the environment of Mother Nature. In order to balance the destructions, organisations are entering into voluntary participation in relation to social and ecological responsibilities. The study explores the business performance of IKEA and evaluates their CSR initiatives along with several points. Corporate Social Responsibility Corporate Social Responsibility is an immense initiative taken by different organisations of different countries with a same objective to preserve the natural resources (Crane et al. 2008). It is crucial for the companies to understand the deforestation that gives us papers. Coals which provide electricity for manufacturing. Organisation are using these resources beyond control. Therefore to balance the cause, organisations are supporting various causes to save the resources (Jo, and Harjoto, 2012). Companies are participating to provide a better environment through voluntary participations. Figure1 CSR The term Corporate Social Responsibility is not limited to human rights, labour rights or social security, it moves beyond and helps in fighting climatic changes, developing proper sustainable management processes of natural resources and protection of consumers (Hopkins, 2012). Although the idea of CSR was brought forward by William J. B Owen in 1953, the European commission took 48 years to take a decision on the matter and applying it in their country, thereby promoting the idea of preserving natural resources. Importance of CSR and role of stakeholders Organisation understanding their roles and responsibilities in developing society and helping spreading awareness amongst other business organisation to strengthen the economy of the company. It is essential to understand the development of society in bringing change to the population and people of the respective countries (Hopkins, 2012). Corporate Social Responsibility plays a crucial role in boosting the economy of the country through companys voluntary participations. CSR depends from organisation to organisation. Figure2 Various aspects of CSR in an organisation For example, a company with high CSR standards have certain responsibilities toward their employees, customer and general public. A company with a good CSR standards have a lower employee turnover. However, as new companies are entering various markets, there are certain challenges for companies in developing countries and developed countries. In developing countries, companies face corruption extremely followed by poverty and illiteracy. Therefore companies understand the value of CSR and help to make a better environment by improving society and people (Aguinis and Glavas, 2012). Benefits of CSR Companies enjoy many benefits of corporate social responsibilities, but there are five main areas where the companies receive appropriate appreciation from the society. Some of the benefits of CSR are as follows, Bringing a positive impact to society Supports the consequences of public values Assistance being an employer of choice Helps in professional and personal improvement Improves corporate relations Figure3 Benefits of CSR Many organisation are improving their way of doing business to minimise their carbon footprints to ensure that they have a sustainable working environment that deals in improving the services that actually provides an advantage for the societies (Brammer et al. 2012). Apart from that, donating for the improvement of society or contributing towards a welfare cause is another aspect for the organisation to support various causes. Figure4- CSR impact on Employees Many employees or job seekers prefer organisation that have CSR initiatives and a good reputation in the community. It also helps the company to retain employees thereby decreasing the employee turnover. In addition to this, companies help employees to promote their skills by helping them with appropriate courses that develops the skill of the employees. In doing so, companies have a better relation with their employees. Business Strategy of IKEA IKEA being a global retailer to many consumers has a specific set of goals and objectives that helps them to get a competitive edge from their competitors. The objective of the company is to create a better life every day for the many people. The business principle of the organisation states to provide the consumers high quality products at a low price but not at any price. IKEA believes the business concept of doing their half and expecting the consumers to do the other half to ensure profits. The business strategy of IKEA is economic designs that are attractive, high quality and reasonable price. Apart from that, the company believes in providing distinctive designs that helps them to attract more consumers. Figure5 Strategy of IKEA to gain competitive advantage Being the cost leader in furnishing market, the primary objective of the company is to maintain the market position as there are many companies in the market that are in the same line of business to snatch away the consumers (Brammer et al. 2007). Hence the business strategy of the company is to provide a better experience for the consumers. With the advent of e-commerce, consumers are now purchasing products online and therefore IKEA has also initiated the process of e-commerce facility for their company to increase the sales. Why IKEAs strategy is sustainable The organisation believes in providing the consumers products that are affordable, attractive and pocket friendly. Earlier consumers used to think furniture as a long term investment. However, with IKEAs environment friendly strategy, the company has been able to change their business processes. The organisation has made business processes much simpler by including the idea of cost cutting solutions that ensures safety of the quality of the product (Matten and Moon, 2008). Apart from that, the idea of developing flat pack furniture also brings the leverage of minimising the manufacturing cost thereby reducing prices and eliminating transportation and storage costs respectively. The products can be self-assembled which helps the company is making low cost products. The company recycles or re-use the timber woods and manufacture products from the old resources thereby contributing to the environment (Sen and Bhattacharya, 2001). Apart from that, the international strategy of IKEA is to increase its market size, great returns on investment, improving the economic, getting a competitive advantage and so on (Byrd, 2007). The company believes in providing the consumers with products that are acceptable. As the company uses recycled woods for their products, the company is ensuring environment friendly process to conduct business. Apart from that the organisation has also contributed in various areas such as the organisation has reduced their carbon emission through their value chain and ensuring appropriate use of resources (Carroll and Shabana, 2010). The organisation is making steady progress. In addition to this, the organisation is also ensuring appropriate forestry requirements. It is important for the company to understand in preserving the forests. Therefore the company uses recycled woods. Apart from that the company believes in using the minimum resources to ensure preservation of resources. Broader environment and ethical implications The organisation believes the possibility of traditional business objectives and social responsibilities can benefit many societies and cultures. The organisation is presently doing their best to reduce the impact of carbon footprints thereby making a more sustainable society. It is crucial for the organisation to determine the core problems of the issues and develop appropriate strategies to ensure the safety of natural resources (Cheng et al. 2014). In case of IKEA, the organisation believes in three areas for the improvement. They are better living conditions, welfare of the children and establishing environmental friendly projects. However, there are certain challenges that the company had to face. For example the issues in Poland has created many problems for the company. Figure6 Contribution of IKEA Apart from that, Korea does not prefer organisation with such high prices. In Korea, the products are expensive as compared to European countries. In addition to this, the organisation has collaborated and cooperating with WWF to ensure forest management for the animals. The organisation has also reduced the use of water consumption. The organisation is aiming at various areas to ensure an environment friendly business operation. However, still the organisation is facing certain criticism in Asian countries and European countries for their product pricing or political disagreement (Flammer, 2015). Business performance of IKEA Figure7 Business performance of IKEA 2001- 2015 The organisation with the help of their operational strategies and business objectives have been able to perform adequately over the years. The problem with Poland has also calmed down and there has been a great improvement in sales in the last year. Over the years the company has improved their business and expanded to different countries. The organisation has improved their business strategies and focused in priding a better service to the consumers (Hilson, 2012). Despite the advent of e-commerce, consumers still prefers to visit the stores for unique experience. Apart from that the organisation also has a cafeteria and other services which makes the experience comfortable to the consumers. The organisation mainly targets the young people with a middle income capacity and upper level person. Apart from that IKEA also aims at business organisation to increase their sales. Conclusion The report constitutes various information on the role of corporate social responsibility, their benefits and steps taken by the organisation to reduce their carbon footprint. The study explores the ethical challenges, the business performance of the company over the years and discussed the problems of the company in relation to the CSR activities and their initiatives respectively. Reference List Books Crane, A., Matten, D. and Spence, L.J. eds., (2008).Corporate social responsibility: Readings and cases in a global context. London: Abingdon: Routledge. Hopkins, M., (2012).Corporate social responsibility and international development: is business the solution?.Abingdon: Earthscan Hopkins, M., (2012).The planetary bargain: Corporate social responsibility matters. Abingdon: Routledge. Journals Aguinis, H. and Glavas, A., (2012). What we know and dont know about corporate social responsibility a review and research agenda.Journal of management,38(4), pp.932-968 Brammer, S., Jackson, G. and Matten, D., (2012). Corporate social responsibility and institutional theory: New perspectives on private governance.Socio-Economic Review,10(1), pp.3-28 Brammer, S., Millington, A. and Rayton, B., (2007). The contribution of corporate social responsibility to organizational commitment.The International Journal of Human Resource Management,18(10), pp.1701-1719 Byrd, E.T., (2007). Stakeholders in sustainable tourism development and their roles: applying stakeholder theory to sustainable tourism development. Tourism Review,62(2), pp.6-13. Carroll, A.B. and Shabana, K.M., (2010). The business case for corporate social responsibility: A review of concepts, research and practice. International Journal of Management Reviews,12(1), pp.85-105 Cheng, B., Ioannou, I. and Serafeim, G., (2014). Corporate social responsibility and access to finance.Strategic Management Journal,35(1), pp.1-23 Farooq, O., Payaud, M., Merunka, D. and Valette-Florence, P., (2014). The impact of corporate social responsibility on organizational commitment: Exploring multiple mediation mechanisms.Journal of Business Ethics,125(4), pp.563-580 Flammer, C., (2015). Does corporate social responsibility lead to superior financial performance? A regression discontinuity approach.Management Science,61(11), pp.2549-2568 Hilson, G., (2012). Corporate Social Responsibility in the extractive industries: Experiences from developing countries.Resources Policy,37(2), pp.131-137 Jo, H. and Harjoto, M.A.,(2012). The causal effect of corporate governance on corporate social responsibility.Journal of business ethics,106(1), pp.53-72 Kim, Y., Park, M.S. and Wier, B.,(2012). Is earnings quality associated with corporate social responsibility?.The Accounting Review,87(3), pp.761-796 Luo, X. and Bhattacharya, C.B., (2006). Corporate social responsibility, customer satisfaction, and market value.Journal of marketing,70(4), pp.1-18 Matten, D. and Moon, J., (2008). Implicit and explicit CSR: a conceptual framework for a comparative understanding of corporate social responsibility. Academy of management Review,33(2), pp.404-424 Sen, S. and Bhattacharya, C.B., (2001). Does doing well always lead to doing better? Consumer reactions to corporate social responsibility.Journal of marketing Research,38(2), pp.225-243. Corporate Social Responsibility Question 1 a. Corporate Social Responsibility (CSR) Corporate Social Responsibility can be defined as the transparent business practices on the basis of ethical values, respect for the people, communities and environment in which the company operates and operating its business in compliance with the legal requirements (Agoes Kristaung, 2008). Thus it is observed that the organizations in addition to making profits are also held responsible for the impact their actions and operations can have on the people and the planet. The term people refer to the stakeholders who have an interest in the business of the company and are affected by the actions that the company takes. It includes the customers, the business partners, the employees, the investors, the government, suppliers and the community. So it is observed that CSR is aimed at ensuring whether the companies are conducting their business in an ethical manner. Again CSR while evaluating the business of the companies on ethical grounds also takes into consideration the economic, socia l and environmental impact of the operations of the business (Roitto, 2013). Thus it involves activities that include looking to the facts: Whether the company operates in partnership with the local communities Whether it is making socially responsible investments Whether it strives to develop effective relationship with the customers and the employees Whether it takes care of the protection of the environment and sustainability b. Organizations Stakeholder Analysis Stakeholders can be defined as the individuals or the organizations who have an interest in the business and who stand in order to gain or lose as a result of the success or failure of the business of an organization. Thus stakeholder analysis can be defined as an important tool that is used by the organizations in order t identify the key individuals or organizations who need to be win over for the benefit of the organization (Brugha Varvasovszky, 2000). The stakeholder analysis involves the following steps:Identifying the StakeholdersThe first step involves identifying the individuals or the organizations that have a direct influence over the business or have an interest in success or failure of the business.Prioritizing the StakeholdersThis step involves identifying which stakeholders have high/low influence over the business and which stakeholders have high/low interest in the business.The above figure shows that the stakeholders who have low interest but high power should be ke pt satisfied. The stakeholders who have low interest and low influence should be monitored i.e. the organization should not put much effort in keeping them satisfied. Again the organization should strive to manage the stakeholders who have high interest and high influence over the business (Varvasovszky Brugha, 2000). Finally the stakeholders who have high interest but low power should be kept informed regarding he activities.Understanding the Key StakeholdersIn this step the organization should strive to understand how the key stakeholders feel regarding the undertaken project and should also take into consideration their reactions towards the project. The organization also strives to engage the key stakeholders and establish effective communication with them. c. Examples of Organizations Criticized for Poor CSR Taking into consideration the CSR aspects at Nike, the company has been criticized for making its workers work under poor working conditions and there have also been allegations against the company regarding harassment and abuse of the workers at its contract factories (Mallenbaker.net, 2004). Thu the issue that has been raised is labour noncompliance in contract factories.In the recent time before the London Olympics, it was found that Adidas has violated the workers rights while managing nine locally owned factories in order to produce Olympics shoes and clothing for the company. The workers were made to work for around 65 hours i.e. 25 hours more than the standard working week and at a low wage. They also suffered from physical and verbal abuse and were punished for failing to meet the production targets (The Independent, 2005).In addition Puma was criticized for the Suppliers Critical Conditions. The workers at one of the supplier of Puma i.e. Surpassing were forced to work for e xcessive overtime and they were paid 64 cents for each regular hour, they were also fined if they refused to work overtime, poor residence conditions, poor food, unsafe working conditions and unethical procedure for waste disposal (Chinalaborwatch.org, 2006).In the context CSR criticism Reebok has been criticized for disrespecting women through a campaign its campaign in Germany (Cook, 2004). The company suggested respecting the workout more than the woman in the life of an individual. Question 2 a. Using Teamwork for Improving Performance within an Organization The complexity of the tasks makes it difficult on the part of an individual employee to complete it in affective manner. So the organizations strive to form teams consisting of individuals with complementary skills and a pool of experience that is essential for successful completion of the tasks (Jones George, 1998). This drives the employees to coordinate their efforts which lead to enhanced performance. The enhanced performance depends upon following factors: a. Espirit de Corps Regular and continuous communication among the team members leads to the development of spirit de corps and thus establishes a sense of common interest, fellowship and commitment towards the accomplishment of the objectives of the team. b. Satisfaction Team consists of individuals with varied skills and experience and thus they try t complement each other. So it enhances the individual performance (Leonard, Graham Bonacum, 2004). Thus they enjoy doing their work and gets motivated towards performing better in order to successfully contribute towards the achievement of the teams objective. c. Utilization of Resources The formation team facilitates the company to involve multiple individuals for the completion of the tasks that not only reduces the time for completion but also increases the speed that leads to the accomplishment of primary objectives. d. Creative and Learning Environment Team formation brings toge5ther individuals with varied experiences and skills which enhances the creativity of the individual team members together with the creativity of the entire team (Tambe, 1997). Again it also facilitates the individuals to learn from the experiences of others which enhance the individual performance together with the performance of the team. b. Using Belbins Theory of Team Roles for the Development of Best Team A team is formed in order to bring the individuals with varied skills and experience together which not only enhances the performance of the individual team members but also enhances the performance of the team as a whole through learning and knowledge sharing (Belbin, 2010). The Belbin Team role model provides guidance for making use of the talents and personalities of the team members. Belbins Theory describes the nine team roles and their talents as follows: a. Implementer The individual is disciplined; task oriented and acts as a practical organizer within the team. He is also responsible for putting the plans into actions (Prichard Stanton, 1999). b. Resource Investigator He is expected to be an extrovert with lot of contacts within and outside the team and is capable of bringing new opportunities for the team. c. Plant He acts as an innovative and creative thinker and has the capability to solve complex problems. d. Monitor He acts as a team analyst and is capable of analyzing the situations and focuses upon making accurate and right judgements. e. Shaper He acts as a challenge loving individual and focuses upon completing the tasks within the specified deadlines. f. Coordinator He takes care of the procedures to be followed in order to complete the tasks and also strives to identify the needs and wants of the other team members (Van Heerden, 2012). He is capable of utilising the right talent in the right manner and is responsible for taking tough decisions. g. Complete Finisher He focuses upon completing the tasks in a perfect manner and also takes care of the safety of the team members and focuses upon maintaining the quality of work. h. Teamworker He focuses upon providing a pleasant atmosphere to the team members and strives to create a sense of togetherness among the team members. i. Specialist He acts as an advisor and provides knowledge on specific topic and thus makes his contributions to the team with his technical and substantial skills.Thus from the above team roles as described by Belbin, it can be inferred that these roles played by various individuals helps in enhancing the performance of the team members as well as the team which leads to the development of an effective team. c. Tuckmans Theory of Team Development The Tuckmas theory of team development proposes that formation of team involves time and thus a team has to pass through various stages while they transform from simply a collection of strangers to united group with a common goal. The various stages are:[Source: www.businessballs.com] a. Forming In this stage the team members are anxious since they are not aware of their tasks and the leaders pay a dominant role since the responsibilities of the members are not clear (Bertram, 2006). b. Storming The members look upon themselves as an active member of the team. They tend to challenge each other and the leaders regarding what are the things that need to be done. The stage is also characterized with conflicts and may also have a negative impact on the performance. c. Norming In this stage the team members come together and thus the roles and responsibilities are clarified. The stage is characterized by a feeling of togetherness among the team members (Mai et al., 2011). d. Performing In this stage the focus is on team relationship and tasks which leads to synergy. The members work together that leads to enhanced of performance.Thus it can be inferred that this model provide assistance in team development and the problems that may arise during the development of the team. Section B Question 1 a. Nuisance to Land Thereliecertain differences in between trespass and nuisance where majorly, in case of nuisance the damage must be proved. In case of nuisance the resultant effect is seen as something that is suffered by an individual in place of a kind of conduct that originally is forbidden. Generally nuisance may be defined as as unreasonable interference pertaining to the use of land usually by making use of the public right -of way. Theresultantharm will be considered to be a nuisance irrespective of its being originatedfrom negligent, intentional or non faulty conducts. The base principle pertaining to nuisance come from alatinmaxim which may be translated into"use your own property so as not to injure that of yourneighbours (Ellickson, 1973).Under the present law, Nuisance covers a varied range ofobjectionable activities such as vibrations, noise, water and air pollution and most importantly noxiousodours.Otherconducts such as erecting dangerous structures alongside certain interfaces, obstru ction of streets, certain water rights come under nuisance. b. Crowd Control A crowd is defined as a group of people that is formed for a common purpose i.e. either it strive to support some cause or strive to oppose some cause. Crowd control can be defined as the process that is taken in order to prevent the outbreak of disorder and the prevention of a possible riot (Lasecki et al., 2011). Again it can also be defined as the term that is used in order to define the ability that can be used for reducing the possibility of fight or chaos among a unit and this can be done by either restriction the contribution of the members of the crowd or by restricting their means to escape. c. Remedies Remedies can be defined as the way in which a right is imposed by the court of law in case of a wrongful act, injury or harm that is imposed upon another individual (Katz, 1968). Thus it is the means with the help of which tight violation can be prevented or compensated. d. Stakeholder Stakeholder can be defined as an individual or an organization that has an interest in the business of an organization (Harrison Freeman, 1999). This reveals the fact that they have the ability to affect the objectives, actions and policies of an organization and are also significantly affected by the policies and procedures of the organization. Question 2 Benefits of Green Event The benefits of Green Event can be discussed as follows:Benefits to the Organization: It helps in reducing the bill of trash with the help of diversion of the recyclable materials. It also provides a positive publicity of the company that it strives to take care of the environment. The waste prevention provides assistance to the company to minimize their management and purchasing costs (von der Heidt Firmin, 2009). It also helps in enhancing the brand image of the company since it creates a feeling in the minds of the customers and the stakeholders that the company is socially responsible and discharges it responsibility in an effective manner. Benefits to the community: The community cost of expanding the landfill is reduced by making a significant reduction in the quantity of the materials that are transferred to the landfill. The opportunities for job are enhanced with an increase on the process of recycling. It also enhances the awareness on the part of the public in the context of recycling of the wastes.