Corporate social responsibility (CSR) is the consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social benefits along with the traditional economic gains which the firm seeks. (Peng, 2012). According to World Business Council for Sustainable Development (WBCSD, 1999), CSR is an organization’s commitment to a discretionary behavior that leads to economic development and contributes to the welfare of its employees, local community and society at large. (Ilona, Kazlauskaite, 2011). Corporate Social Responsibility (CSR) has become very important in that it become a strategic issue that spans across various departments of a firm.
These are related to Corporate Social Responsibility. The CSR plan can increase shareholder value as well as boost employee engagement and brand recognition. The Human Resource departments play a huge role in ensuring that the company adopts the Corporate Social Responsibility programs. Human Resources can manage the CSR plan ... ... middle of paper ... ...te causes and opportunities, consistently communicating a simple strategic message will add value. This means integrating the CSR message with the core branding strategy externally to consumers as well as a clear consistent message internally to the employees and externally to potential employees, suppliers, retailers, governments and communities.
The first goal of corporate communication is to improve the reputation of a company. A corporate reputation is a cognitive representation of a company’s ability to meet the expectations of its stakeholders. A company benefits from a favourable reputation by becoming the first choice of customers, investors, suppliers and employees. A corporate reputation creates shareholder value, because it contributes in and of itself to the company’s competitive position. A company benefits from its reputation, because: · It improves cash flows and profitability; · It acts like a barrier that impedes rivalry; · It provides a company an enhanced license to operate; and · It raises a protective shield against downturns and crisis.
A working relationship with suppliers to build a supply chain that is sustainable can help the company cut cost, create new sources of revenues, better manage business risks, and build the value of their brand. Through efforts, such as improved energy efficiency and streamlined supply chain logistics, Nestle can considerable reduce it cost thus increase profitability in the future. It is also recommended that Nestle should incorporate bottom line sustainability issues into its corporate risk management as this would work towards reducing risk. Show casing innovative solutions to negative impacts of the supply chain operations can work towards brand value. Therefore, sustainable supply chains can reinforce Nestle’s commitment to remaining profitable for the benefit of the company’s
Inclusive Guidance Organizational governance should be an essential feature of business efficiency. Leadership causes a successful work of workforce and demands are met. This guilds in improvement in productivity that helps with bigger profit gains. Organizations debate over management styles that will be most beneficial. Successful front-runners are using a number of management styles that’s effective and shows how the business should operate.
Some of the significance of business ethics includes: Positive Business Consequences Recognition law, mutual trust, and confidence are things that represent success of an enterprise. Building a trust and confidence relationship with its clients is how businesses display a sense of ethical conduct, which will make experiencing a positive consequence. Corporate and its owners Goodwill When business ethical behaviors are good it increases the good will for both the business and its owner. An indicator of a business success shows a strong public image in the end. The volume of the sales, profit margin, employee morale, and crippling the daily operations of the business could have direct consequences if corporation names are blotted.
Archie Carroll suggests that “philanthropy and ethics assist with the social responsibilities and expectations assigned to organizations in order to be successful in a competitive environment” (Carroll, 2015). Integrating the important standards of ethical behavior, and charitable practices are essential for corporate success. CSR can have a positive impact on the community in that organizations are sharing its morals and values. Establishing CSR that benefits the community, can also have a positive impact on employees. Sammi Caramela suggests that “employees are attracted to an organization’s CSR, and more individuals might choose to work there” (Caramela, 2016).
Business ethics can be defined as written or unwritten codes of principles or values the govern decisions and actions within an organisation. Ethics are important in business sustainability because they are what governs an organisation. Ethical behaviour can bring significant benefits to a business. For example, they may: • attract more customers and therefore boosting sales and profits • Make employees want to stay with the business, reduce unemployment/labour turnover and therefore increase productivity. • Attract investors and keep the company's share price high, thereby protecting the business from takeover.
(Lindgreen and Swaen 2010) CSR have shown to increase the corporate commitment and corporate citizenship in the organization. Corporate citizenship involves action and measurement of the extent to which a firm embraces the corporate social responsibility philosophy and then follows through by implementing corporate citizenship and social responsibility initiatives. (Farrell, Hirt and Ferrell 2011) Improving their morale and levels of productivity also increased employee satisfactions. The sense of satisfaction from their contribution from improving their society and the community are factors the employee satisfaction. This also improves the reputation of the organization.
Shared value links the company’s success with the overall success of the society and also gives the right direction to the firm. It concentrates on earning right kinds of profits that is profits that gives societal benefits and helps in economic and social growth. According to business case studies Nestle is working on creating shared value to countries with whom they work these are considered as vital for value chain this includes