Corporate Social Responsibility Case Study

Over the past ten years, a growing trend of corporate social responsibility (CSR) emerged (Chernev & Blair, 2015). Some believe the CSR movement began post corporate financial scandals from companies such as Enron, WorldCom, and Tyco, as investors wanted to see reform and better corporate responsibility (Boerner, 2010). A 2007 survey of CEOs revealed that approximately half of the respondents included sustainability as part of their corporate strategies (Boerner, 2010). A similar CEO study conducted in 2010 indicated that CEOs who embraced sustainability believed that it strengthened their brand, reputation, and built trust among their stakeholders (Boerner, 2010). The surge of corporate sustainability also included environmental and social

1412) of companies involving themselves in socially responsible undertakings that are unrelated to their core business, one must ponder the benefits realized by companies that devote attention and resources to such measures (Chernev & Blair, 2015). A common belief of the past, views CSR as a tool to enhance a company’s reputation, as well as stimulate positive public spirt among the company’s customers (Chernev & Blair, 2015). While many studies confirm this belief, others add to this argument, maintaining that CSR benefits expand beyond brand recognition and good will to actual increased financial performance (Chernev & Blair, 2015; Santoso & Feliana, 2014). Santoso and Feliana’s (2014) study confirmed the veracity of this notion, as data revealed a significant relationship between CSR and short-term financial performance in terms of return on assets (ROA) and return on equity (ROE) (Santoso & Feliana, 2014). Studies have also linked CSR activities to firm competitive advantage (Santoso & Feliana, 2014). This is positive news for corporations deciding to what degree its strategic operations should include CSR. It also rejects the idea that the sole focus of a corporation is profit maximization. Recent CSR literature suggests that managerial responsibility includes protection and welfare of society and the environment (Ofori, Nyuur, & S-Darko, 2014). In fact, “[a]n organization’s concern for profit does not exclude

However, operationalizing CSR comes to fruition when there is visible evidence of an organization adopting socially responsible values. Mason and Simmons (2014) describe four crucial stakeholder viewpoints on CSR outcomes in consideration of “investors, customers and suppliers, employees, and community and environment groups” (Mason & Simmons, 2014, p. 83). Companies that consider these different perspectives recognize an expansive interpretation of corporate accountability (as cited in Mason & Simmons, 2014). As a company dedicated to these identified stakeholders, the company must understand what these various groups use as their evaluation criteria, allowing the company to create scorecards and rate themselves on how well the company meets stakeholder needs (Mason & Simmons, 2014). Mason and Simmons (2014) suggest that companies should assess their CSR bearing on various crucial measurements such as organizational efficiency, effectiveness, environmental impact, reputation, and equity (Mason & Simmons, 2014). One clear and visible evidence of CSR is the extent to which strategic planning, performance management, and corporate governance includes CSR principles (Mason & Simmons, 2014). For example, to assess CSR effectiveness a company can conduct a cost-benefit analysis “of its organizational impact over an appropriate timescale” (Mason & Simmons,