Assessing Organisations corporate social responsibility policy


Organisations are constantly asked by its stakeholders for their demands on devoting its capital to corporate social responsibilities. Traditionally, organisations were think about to be exclusively formed for the purpose of profit making but in recent times along with others factors, corporate social responsibility can be defined as "it is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce, their families and the local community and society at large" (Holme, Watts 2000).

Any judgment made by any business require to be completed with up to date consciousness of the exact situation, and then perform according to some kind of system of principals which is business ethics. There is no big variance in business ethics and normal ethics which identify, what is right or wrong, and learning what is correct and what is incorrect in business environment. 'ethics is commonly defined as a set of principles prescribing a behaviour code that explains what is right and good or bad and wrong .business ethics covers the views of people throughout the society concerning morality of the business and the people who work in it' (Kaler,Chryssides 1993).

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Organisations can be measured, acting as a socially responsibly only when a business adjust all of its exercises to ensure that it operates in ways that meet the ethical, legal, commercial and public opportunity that society has anticipation from business. Therefore to be considered successful corporate social responsibility must be a combined part of day-to-day business, engaging all stakeholders and strategies to assist individual manager to make social, commercial and public expectations that society has been expected from business.



The main aim of my research topic is to discover, what are the corporate social responsibilities and its influence on the main stakeholders and business practices of an organisation. This should allow me to answer my questions, how an organisations perform more socially and ethically, and what influence they can have on its stakeholders? What afford is being placed in an organisation? How much they are committed? In order to achieve my aim I have few main objectives:


In order to get my aim the following objectives are mention which are:

To determine what is meant by CRS (Cooperate social responsibilities) and business ethics, there interlink and affects on business.

To find out through the literature supposed benefits and weakness of CRS and business ethics and its impact on key stakeholders and business performance.

To test the relevance of these supposed benefits in the eyes of the SCB policies and its impact on key stakeholders and business to make final evolution of my findings and decide how well CRS policies of SCB contributed towards stakeholders and business.


As starting point for reviewing the literature it is necessary to define what is meant by corporate social responsibility. Finding a simple meaning for corporate social responsibility is difficult task. Castka ET al (2004) argue that "the corporate social responsibility agenda suffers from a lack of a clear definition and seems to be a loosely defined umbrella embracing a vast array of concepts traditionally framed as environmental concerns, public relations, corporate philanthropy, human resource management and community relations".

A key topic underlying many of the definitions of CSR( Corporate social responsibility) is the idea that ethical business must be Equilibrium their performance over three bottom line ; economic, environmental and social . First recommended by Elkington in 1997, the impact of triple-bottom-line theory is evidently evident in Robinsons (2004) definition of corporate social responsibility. He says that "Corporate social responsibility is about acknowledging that sustainable competitive advantage requires companies to be economically viable, environmentally sound and socially responsible''. The idea of these three keys factors are further reinforcement by the views of a huge array of bodies, such as the UK department of trade and industry (2002), the Global trading reporting initiative (2002) and European corporate Governance institute (2002).

According to Bobadilla (2005) "Sustainable companies have three kinds of responsibility; economic, environmental and social". The text continues explain that corporate social responsible (Corporate social responsibility), acting important role in managing this responsibility and "this is about bringing together the issues of the workplace, human rights, the society and the market place into key business strategies". Corporate Social Responsibility is a much more than an idea; it is a strategy of an organisation. The business market is totally full of competitiveness and profit strategies, which are focussed on the monetary advantages; the corporate social responsibility presents an idea to think further. It present organisation to operate the societies and with the mankind, to build a belief of trust for itself by its customers that it can assure them a safe and healthy trust in the approaching.

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However the range of the problem that corporate social responsibility focuses on and the advantage that it has to propose an organisation are greatly debateable.

According to Wood D. (1991) the corporate social responsibility highlights that "those organisations should integrated ethics into strategic goals of because it is the 'right' thing to do". At a time, it was evidently, the right thing to say that looking at the current development of the paradigm and its practices, however, was missing the solid ground. The managers of an organisation needs to identity its circumstances and take realistic steps to react toward the growing numbers of issues that occur globally by staying out of the ethical scope of a particular nation or its religion. They are normally to take report of the problems and areas that are not purely connected to their business. Both the primary and the secondary stakeholders of the organisations shall be deal with an approach that is practice adjust, which include direct relations and links as primary, the NGOs and other political parties as the secondary stakeholder.

Authors such as Susan key and Samuel J. Popkin (1998) stated that "incorporating ethics into the strategic management practice is not only the right thing but also the profitable things to do", which is a very clear out and attractive explanation of any business organisation, that is to speak the language of benefits and profits.

Further, Waddock and Graves (1997) have correlated corporate social performance into improved financial performance, and Frooman (1994) create that an unethical achievement, conduct to fall in stock price valuation.

Studies leading the basis of corporate failure are mention by many authors, and one of them is Arthur (1984) he urges "that incorporating ethics in before-profit decision making improve strategy development and implementation and eventually maximise organisations overall profits".

Moreover, king (1994 ) suggest that " to both boost financial performance and limit liability ethical criteria need to be integrated as element of strategic management in before-profit rather than after-profit decision making such as philanthropic contributions".

It can be said that social responsibility and ethics hold a comparable situations during the different sciences and paradigms. Even more to it, the rising affect and further advance challengers are very comparable nature too, which confirms that authors primary idea's or theories that the thought of corporate social responsibility and ethics cannot be judge and analysed on its own but rather as a key of expand, comprehensive and complex mechanism. With the implementation of the corporate social responsibility, the corporate organisations are required to contribute more barely in the support of the interests of public or its customers, by their hold on the community growth and development, and intentionally eliminate the practices that can cause damage to the society, and can create despite for the legal boundaries.


Another succeed to subject of corporate social responsibility is the thought of an organisation having 'stakeholders'. Stakeholder theory firstly invented through the work of Freeman (1984). It engages in taking a broad analysis of those with an interest or investment in the firm or organization that expanded way beyond the traditional concept of shareholders, to include groups like employees, customers, suppliers, communities and many more (Newcomb :2003). Its impact is openly clear in business for social responsibility (ibid) definition of corporate social responsibility. They defined it is as "addressing the legal, ethical, commercial, and other prospect society has business and making decisions that justly balance the claims of all key stakeholders". The way of commitment, the opportunity and expectation of the stakeholders are mostly based on the motivation of participation of stakeholders in the Corporate Social Responsibility.

The key principle of the companies or firm is to increase or strengthen the shareholder price in terms of financial profit and price of the share etc, this is usually controlled by the legal compulsions which cover certain environmental aspects. For this reason, the organisation keep in effort to follow the strategies that are more decided on the improvement of the dealing of the organisation with its stakeholders. Now a day the managers must be recognize and act in response to a rising number of international concerns, without the moral extent of the nation, state or religion as a guide ( leader). Managers may require taking positions on issues that in fact are not merely business linked. A practical approach is essential towards all stakeholder groups, both primary, i.e., those who that have direct business connections with the company, and secondary, such as NGOs and political activists, who can change the operations of the company.

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Margolis and Walsh (2001) described Corporate social responsibility as "companies should look beyond the needs of shareholders and take others stakeholders and the in which they operate into account." Utting (2004) give an alternative view, and stating that "Corporate social responsibility is often defined in terms of going beyond philanthropy and beyond compliance with the law". The corporate social liability is all about the business that conducts and not only brings commercial objectives, but they have also good social influence. Corporate social responsibility takes place when the firm handle the business progression to construct a complete positive impact on society.

At last, the definition given by the European commission (2001) seems to join the whole thing together properly. They observe corporate social responsibility as "a theory whereby organisations incorporate social and environmental concerns in their business operations and in their interface with their stakeholders on a voluntary basis". A weak point of this and other definitions could be that they are pretty long winded and impractical.

In today's world the result of an organisation in both conditions. its trusted trademark name and its financial profit has got an authority from its level of adaptation of ethical values. In the result continued profitability and soaring innovations occurs. Such results are more likely when there is a comprehension of the concerns, preferences of the stakeholders of the business. An approach to the CRS from the stakeholder point of view recognizes the entangled nature of financial, communal and moral challenges.

Following the opinion of advocates of corporate social responsibility, any large organisation is essentially a social institutions as well as economic enterprise. Therefore, any business affairs that must be carefully weighted in terms of possible social impacts as the result of such activities, "balancing carefully conflicting responsibilities to various stakeholders". (Geoffrey P. Lantos, 2001).

The above explanation of corporate social responsibility leads to the definitions of corporate social responsibility proposed by (Bloom and Gundlach, 2001) "the vision of the duties of the firm to its stakeholders, i.e. people and groups who can affect or who are affected b corporate policies and practices". The obligations go beyond legal requirements and the company's duties to its shareholders. Achievement of these obligations is anticipated to reduce any damage and exploit the long-run favourable impact of the firm on people.

In the magazine of South China post Morning (2002), it is demonstrated that, corporate social responsibility is the thought and idea of the corporate organisations to serve not only the customers but to increase the revenue to operate society and community where their services are available. It is essentially the awareness of the social responsibility by a reliable organisation to make sure of the ethical values, transparency, employee relations, and most importantly to give respect to the community and population, where they function. Furthermore, the moral limit that influences the strategic result making of the executives and the general operations within the organisation for organisational development. The effectiveness is traditionally determined by its lack of interest about its business viewpoints, which is rather more, oppose to its real meaning.

Further, bloom and Gundlach (2001) review that corporate social responsibility involves the obligations are stemming from the complete "social contract" between business and society for firms to be reactive to society long run needs, optimising the positive effects and minimising the negative consequence of its action on society.

Generally, over the past few years, in the expanding number of companies have been recognised, the business benefits of corporate social responsibility policies and practices. This was further increase by the expanding evidence coming from practical studies that corporate social responsibility is affecting a very positive exposure and creating a confident competitive advantage. All these positively contribution works toward the shareholder value.

As a result of research conducted by Walter Schiebel and Siegi Pochtrager (2003) provide understanding the "outlines that companies also have been encouraged to adopt or expand corporate social responsibility efforts as the result of pressures from customers, suppliers, employees, communities, investors, activist organisations and other stakeholders. As a result, corporate social responsibility has grown dramatically in recent years, with companies of all sizes and sectors developing innovative strategies".

As a conclusion of the all above definition, each company perform in its own exclusive way, depending on its key abilities and stakeholder interests as usual, this is happening at a different degree of success, depending upon the company capability and efforts.

Moreover, country and culture tradition have put a major influence on the company's response and capabilities. According to Walter Schiebel and Siegi Pochtrager (2003) "social responsibility is essentially a philosophy or a vision about the relationship of business people, one requiring leadership to implement and maintain it over time".

The most effectual way to consider it is a long term investment, paying back by good publicity, employee loyalty and commitment, increased profitability and general competitive advantage. A big difference between them is to react as an investment, not as a cost, even both have of a similar financial nature. The process calls for the continuously improvement and development, which begins from ground level but gradually, grows and expands with the passage of time.


Qualitative approach is implemented to calculate and analysis the research topic with the aim to know the corporate social responsibilities along with business ethics and their influence on main stakeholders and business practice. Data collection approach has been applied according to the research topic. Data are collected mainly from secondary source published by various authentic and reliable resources including various article, journals, newspaper, websites and annual reports of an organisation. Data has been analyzed and calculate to reach the final outcome through investigation.


The data are mainly to be collect from secondary source all these sources should be authentic and most reliable ones it will include various library materials , articles, journals , newspaper, websites and annual reports of various organisation.