These day, there was a stir in public opinion about Vedan Vietnam Company discharged untreated waste directly into the river and milk made in China containing melamine that appeared on the shelves many years in Vietnam and someother countries. The great fame and prestige, which have been creating for long time, were spoilt in a short moment. Thus, corporations want to improve and develop its reputation sustainable in the strict look of society and customers, they have to obey the rules of environmental protection, labor rights, industrial safety, etc. and make opportunities for the companies approach the social responsibilities from the beginning in order to avoid social community's boycott. The big question for most of companies is controversial that they value focusing on profit as the top-raking or investing social responsibility? Customers bring the prosperous and richness for business firms, so the responsibility of companies to society is considered as to itself. In this assignment, I am going to explain briefly and take several business examples to understand more about corporate social responsibility (CSR).
ABOUT CORPORATE SOCIAL RESPONSIBILITY
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The term of CSR refers to the act of organizations putting simultaneous profit maximize and ethic norm on the top in order to improve well-being of community through its activities best practices which are all about environment friendly, communities, clients, and employees. Obviously we exist and use environment and creature that The benevolent Creator given us but we betray and are destroying him pitilessly little by little. Look at what we done and think why we have to do this to our world and our mankind. How many people do know and understand that? On the one hand, it is pointed out that CSR usually belongs to the good operation of a company which means companies just begin to respond to society when they gain benefit, and so, no benefit, no CSR. According professors Paul Godfrey, Craig Merrill, and Jared Hansen, on the other hand, they looked at lawsuits hostile to a company, assessed the influence of its stock in the stock market and finally noticed the negative happening level for a company synonymous with the drop level in the market stock price. Practically, the implementation of social responsibility brings lots of advantages such as raising financial situation, improving reputation, reducing expenses, and motivating labor productivity. In fact, if employees have opportunities to work in favorable conditions, they will complete work easier and faster; therefore, firms are able to approach and expand its products to global market.
CASES OF CORPORATE SOCIAL RESPONSIBILITY
THE BODY SHOP INTERNATIONAL PLC: According to the president - CEO of the Association of National Advertisers, Bob Liodice, The Body Shop International Plc. belongs to the 10 social responsible companies. Also known as The Body Shop, was established in 1976 by Dame Anita Roddick, headquarters in UK and now is a partner of the L'Oreal corporate group. Various products of the company such as skin care, bath & body, hair, make-up, fragrance are made primarily using natural ingredients to make customers more beautiful in the unharmful way. The objective of The Body Shop is not only for customer beauty and gorgeous, but also something good for our planet and being as a company of worth in both social responsibility and successful. In fact, as it is one of the first companies publish its report of efforts and initiatives; it is considered as a pioneer of up-to-date CRS.
Unfortunately, Purkayastha, D. and Fernando, R., (2007), who won the 3rd prize of oikos writing competition about The body shop's CSR incidents, denounced that L'Oreal is a cosmetic company testing on animal, exploited the sexuality of women, moreover, it is owned 26% by Nestlé, which is a boycotted company worldwide because of amoral business practices and the crucial thing is The Body Shop is a son of them. Many critics announced a boycott of The Body Shop's products when it merged into the two critical companies, it will lose its value, and principles as well as image are affected. Purkayastha and Fernando even denounced ingredients of products contain non-renewable petrochemicals, fragrances and preservatives, and synthetic colors. "I do not believe that L'Oréal will compromise the ethics of the Body Shop. That is after all what they are paying for and they are too intelligent to mess with our DNA â€¦I want to make things happen, to spread human values wider in business if I possibly can. And this sale gives us the chance to do so." - Dame Anita Roddick rejected.
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In fact, Community Fair Trade of the company, which was launched in 1987, is reputedly one of the first examples of fair trade and benefits for the company, customers and suppliers. To the company, fair price is not important enough for their suppliers, but the thing is what they do to them. Suppliers are offered a regular income, security and even confidence to develop their own business, improve better future and community throughout company's long-standing trading relationships. Via the ethical trade program, The Body Shop commits there are not, will not and never have discrimination, child labor, poor working conditions happening in the company which is strictly monitored and enforced.
Being as a proud social responsibility organization in worldwide, The Body Shop is aware of the threat and disaster of climate change to human kind and businesses. Every product has labeled an eco-conscious symbol that represents environmental criteria in manufacturing process. Practically, they have taught their staffs about the vital of energy saving and also created the renewable energy way, which are used in 65% stores on contracts. Not only human being but also animal is as important as equal. Testing on animals in general and white mouse in particular seems like indispensable step of most of companies before launching new product to the market. Is it ethical and moral? No matter what it is or not, The Body Shop - brand of friendliness, always believe animals are not things to use for testing and they have never ever do this for sure as it can be seen clearly the "against animal testing" slogan above ingredients is appeared on product label. They apply this requirement to suppliers and also ask them to sign a certificate every six months in order to confirm. If the company discovers they break the compromise, they will be lost business and the company will seek for other sources. Under the commitment, they "won the RSPCA Good Business Award for the second time". The way for checking and testing products is on artificially grown human skin, which was invented by its parent company L'Oreal. By the "Learning is of Value to Everyone (LOVE)" initiative, the company allows employees approach and learn new skills and raise their sense of wellbeing through the training course support. And that makes the company have opportunities to work with several charities, for example The Aldingbourne Trust and Children on the Edge. Over â‚¤4.1 million was extracted and donated to local partners to help preventing, supporting and protecting of abused domestic women and children.
Furthermore, a Staying Alive Foundation project of £1, 1 million has been raised to assist adults on safe sex, HIV and living with AIDS. Another company's campaign has to speak up is "the stop sex trafficking of children & young people" that has been launched since 2009 and gathered sponsor in more than 40 countries around the world. Along with this campaign, The Body Shop has manufactured "soft hands kind heart hand cream" product meaning all the money sold is delivered to the ECPAT (End Child Prostitution, Child Pornography and the Trafficking of Children for Sexual Purposes). It worked effectively, brought £1 million for charity and has reached almost 6 million signatures on the company's website so far.
ODWALLA INC.: is the juice company in America, was founded by Grey Steltenpohl, Gerry Percy and Bonnie Bassett in 1980, living with 3 principles: making great juice, doing good things for community, and building a business with heart. The company provides delicious and nutritious beverage, snack and the commitment of never containing artificial colors, preservatives or genetically modified ingredients. It was growing incredibly with annual sales going up to 30%/year and approximately $90 million. So, what went wrong?
In Washington State, Health officials informed on 30th October 1996 that they discovered Odwalla apple juice containing E. coli 0157:H7 which is a mutant form of bacteria inhabit commonly of the intestinal tract of human being and cattle. When it was confirmed on 5th November, this caused one child died and more than 60 consumers got sick after drinking in the Western US and Canada. After that, sales dropped down ruinously by 90%, stock price fell 34%. More than 20 personal-injury lawsuits were handed in and the company was in the bankrupt risk.
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What did they do to fix it? The company immediately recalled thoroughly all apple juice and carrot juice within 48 hours in 7 states despite the uncertain link in some places. It cost $6.5 million around 4,600 retail outlets. In addition, the CEO promised to pay all medical costs for the injured and also had a talk with the press, television in order to provide accurate information. Following, a new process called "flash pasteurization" was introduced that guaranteed containing E. coli no more but still keeping the best flavored juice. Exactly one month later, Odwalla Company had in place what some experts described as "the most comprehensive quality control and safety system in the fresh juice industry" and brought back its apple juice on 5th December.
Furthermore, the company has donated to the Organic Farming Research Foundation and Conservation International as well as permitted a local farmer to use 20 acres land for free over 10 years for growing and maintaining a peach orchard. During the period of 2008 and 2009, the campaign of Odwalla Plant a Tree had 160,000 trees in state parks around America with the vital meaning to help reduce 240 million pounds of carbon from the environment. By the efforts for the country and the people, Odwalla uses green energy which is generated from such expensive sources as wind, solar, and geothermal systems in order to encourage further development green energy.
Thanks to advanced technology, business firms are able to approach the burning CSR issue as rapid as global warming does. Some enterprises had positive activities such as charity, rising funds, reducing poverty, and workforce rights, nevertheless, it does not implement regularly because of depending on finance and the sense of owner's responsibility. Anyway, ignoring who do understand it or those do not, this assignment expresses the advantages of taking CSR for community in organizations based on the two key typical cases mentioned above. If we conform to the law seriously and execute it ethically, it will help our planet to be sustainable development and expanding globalization.