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Introduction essay on corporate social responsibility in business
Nature and concept of corporate social responsibility
Abstract about corporate social responsibility
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Concept of Social Responsibility
Corporate Social Responsibility is management’s obligation to protect and promote their stakeholders welfare. Social Responsibility is more than just obvious ethical issues like honesty and integrity in business dealings.
Stakeholders refer to individuals or groups of people that have an interest in a business. Management argues that as long as there is wealth for shareholders, then anything is done in a responsible manner and things should be done to promote the interest of other stakeholders.
Interest groups
The owners of Pick n Pay have contributed capital towards the business CSI projects, so the direct interest in the financial performance in the business impacts on the value of their investments.
Employees at every level have an interest in how the business is performing financially, as it impacts their remuneration.
Suppliers are suppliers of raw materials, capital of goods or even finance suppliers. These suppliers expect prompt payment from Pick n Pay. This may be in conflict with business’s interest of delaying payment to create better cash flow and finance performance.
Consumers have expectations In terms of a good quality product that should be availed at a reasonable price. Consumers don’t only want the business to be socially responsible towards them in this manner of reasonable prices but way beyond this. They should meet the needs of consumers in ways of convenience and appearance. But business should also consider other aspects like environmental impact when packaging is disposed.
Competitors are business selling other brands and substitute products.
Sustainability
Sustainability is teaching marketable skills for entrepreneurs with suppliers or markets, this enables th...
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...ething big with their lives and they might also donate money to save other prematurely born babies.
Conclusion
CSR and Corporate governance initiatives are good for communities, because they help elevate the community and they bring growth to the communities. CSR does reach their aims and their need. Like the Kids in Parks initiatives by Pick n Pay, they help the young generation to break out of the cycle of poverty. And CSR is good because it helps promote the image and goodwill of the business: Pick n pay is a perfect example.
Introduction
This project is about the sustainability of Pick n Pay and how they help the community to be sustainable. In this project Corporate Social responsibility will be discussed and analyzed. This project discusses how CSR helps the community and why CSR is needed, but also why CSR is good and why it isn’t for some businesses.
The basic definition of social responsibility is that all companies should embrace more than just the focus of maximizing profits, and should have as part of their business model the goal to have a positive impact upon the society in which they operate. (Investopedia, 2014) Some businesses believe that social responsibility can only be applied to individuals and not to a corporation or business entity, and that the social responsibility of business is only to maximize the profits of the company for the shareholders of the organization. By maximizing the profits of a business, society as defined by these companies, is benefiting because the business is successful adding value to the entire society in which the company is operating.
Social responsibility can be defined as “the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large” (Mallen Baker, 2004). In addition, social responsibility has been defined differently by various corporate leaders that provide guidelines which impacts how one manages the core business. Social responsibility is an essential part of a business. If managed correctly should strengthen the competitive spirit of the company and provide prosperity to society.
The topic of corporate social responsibility is play a key role to run a business and has become one of the standard business practices of our time. In current, most successful companies whether big or small enterprise for instance Apple, lnc. and Krotron has engaged in CSR because it is a good way for companies to benefit themselves while it also benefiting society. And in order to obtain benefits that can give them the advantage over their competitors.
Corporate Social Responsibility (CSR) is a concept whereby organizations consider the wellbeing of the public by taking responsibility for the effect of their actions on all stakeholders; customers, employees, shareholders, communities and the environment in every aspect of their operations. This responsibility is seen to extend beyond the statutory obligation to comply with legislation and sees organizations willingly undertaking additional steps to improve the quality of life for employees and their families as well as for the local community and society at large.
Corporate Social Responsibility (CSR) is the way a corporation achieves a balance between its economic, social, and environmental responsibilities in its operations so as to address shareholder and other stakeholder expectations. In general, when firms hold this wider encouraging role on the public by being engaged with stakeholders, a variety of profit can be produced for both company and the stakeholders. A key inclination is the combination of Corporate Social Responsibility (CSR) into the organization strategy, culture, mission and communications. By incorporating corporate citizenship into the company it is no longer an additional “nice thing to do” or something made to obey laws or regulations. Instead, corporate responsibility has become something business leaders and workforce want to engage in, frequently because executives who believe in the long-term see business profit. The four types of social responsibilities a...
Corporate Social Responsibility (CSR) is the set of regulations that an organization makes to protect and increase the society in which it functions. There are three areas of social responsiblity: Organizational stakeholders, the natural environment and general social welfare.
Performance related pay is a financial reward given to employees whose work is considered to have reached a required standard or is above average. “PRP criteria can relate to the individual employee, to work groups or to the organization as a whole” (Armstrong, 2002). It is fair to provide people with financial rewards as a means of paying them according to their contribution (Armstrong 1993:86). The primary purpose of performance related pay in any organization is to recruit, retain and motivate the workforce. It also helps in focusing employees’ minds on particular goals (Protsik, 1966); communicate to employees an organization’s core values, and change the culture of that organization (Kessler and Purcell, 1991).
Number of companies with good social and environmental records indicate that CSR activities can lead to better performance, and you can generate more profits and growth.
...r investigate what sort of rewards or fringes would their employee’s desire compared to the old method of monetary incentives for the beneficial for the company”.
-Profit: Employees must contribute towards ways to improve the profit figures for the company and plan so as to to achieve this effectively.
This article explains that Pick n Pay sees the importance of the socio-economic factors that are facing companies in the world and states how it attends to these various demands. Whether it is in the form of cutting down on expenses to accommodate the increasing prices of electricity or fuel in the country so it does not intervene with their profit margins, or the upliftment of customers by offering the best possible prices. They also do great things to aid the environment and minimise their carbon footprint. It also sets further goals that Pick n Pay aims to achieve over the next few years. It then provides a summary of the activities that Pick n Pay takes part in according to the Global Compact Ten Principles. This ranges from the protection of human rights, the regulating of labour, the discrimination of employees, the stopping of corruption and also the aiding of environmental aid and responsibility.
Stakeholders are interest of an individual or groups that directly or indirectly affected by the organisation’s activities, policies and objectives (Henry Frechette, 2010). Stakeholders can be divided as internal (managers and employees) and external (shareholders, customers, and suppliers) (BPP F9). Different stakeholders may have common interests or conflict interests with company. Company board members or management must take care about stakeholders’ interest. They can’t make the decision based on their own interest or their relation with others organisation. Conflict of interest will arise when interests of organisation act in concert with managers’ personal interests or interests of another person or organisations, (Anon, no date).
Stakeholders and stockholders are a group of individuals that can affect the company and also are affected by the company. In order to be a successful company needs to maintain their investor’s confidence. Stockholders are also able to develop value for the customer because they invest on ideas that will produce success for the company. Stakeholders are all the individuals that have an interest in the company such as employees, customers, and the surrounding community.
Pick n Pay is very much concerned with sustainability according to the triple-bottom line. They ensure that they are constantly looking after it’s customers, looking out for the environment, and ultimately making a profit.
However, there can be more definitions about what Corporate Social Responsibility can be. For example, Corporate Social Responsibility can be the commitment which is continuing for a business to behave ethically and bring to economy the development to improve the workforces’ of the whole society and local community and their families’ quality of life. Corporate Social Responsibility is also known as the obligation of a company to serve the society’s interest and of course its own. With the help of the Corporate and Social Responsibility, social and environmental concerns companies can integrate into their business and stakeholders operations.