The Approach Of Corporate Social Responsbility Commerce Essay

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Corporate social responsibility is the approach to business that takes the account of issues associated with society and the environment in addition to the more traditional business concerns of shareholders and profits.

Corporate social responsibility is not a innovative thought in the earth on the other hand, what is latest is the change in midpoint from production proceeds to assembly community challenge.

"Corporate Social Responsibility is the ongoing promise by business to behave morally and supply to financial growth while civilizing the superiority of existence of the labor force and their relatives as healthy as of the confined people and civilization at outsized".

And so is the double meaning of corporate social responsibility. On the one hand, it raises an ethical behavior that shows the organization to its stakeholders, both at home and abroad (as well as customers and employees). On the other hand, it demonstrates the organization's responsibility towards the environment and the communities they serve.

Changing in recent years has presented a picture of the work and for more help the idea of social responsibility. 1960 and 1970 some public opinion polls, a United States businessman does not disappointed. These elections have shown a person who others do not care as entrepreneurs who Social problems, the population preys, ignore the exploits work, and a selfish money grabber. On the other hand, even were these ideas U.S. traders believe that others know it has been seen Look the same, and practical, down-earth, hard, to imagine, Gradually, the interest of free competition and hazardous.


"In 1953 with the publication of corporate social responsibility statement has been prepared

Bowen is the social responsibility of business (the company and see 2006 report) development.

Any institution the business as old as corporate social responsibility. The impact of manufacturing and business community to fully a new vision led to. We are 80 and 90 by the academic debate has taken corporate social responsibility. In 1998 the first company to implement corporate social responsibility and Shell. With people on the public well informed and educated to become a threat to companies and corporate social responsibility is a solution for it. CSR 1990 copper price gallery and a standard industry with companies such as KPMG were. A code of conduct and reporting it to the NGOs and multi-stakeholder and ethical trading initiative behind the development of corporate.

What is CSR?

Corporate Social Responsibility, a form of self-organization of business, can include social and environmental issues. This is a business model law, ethical standards, which show international standards. In short, CSR represents the deliberate inclusion of the public's interest in a business' decision making to make sure a triple base stripe that consider the earth, public, and earnings.

In wide-ranging, CSR involve various variety of identical reporting that allows the business to assemble in sequence on how it is making progress on various front. Businesses that employ in CSR naturally center on some or all of the following:

Employees: Businesses typically center on office environment, reimbursement, income and teaching. community: the participation of surrounding community's part of is important not to create human capital as well that can serve the company, but also securing reputation may create more work. Regulation: Rules and respect the maximum and beyond in many cases division of human being within society accountable. emergency Preparedness, b+eing prepared to respond to crises and ensure that companies Security personnel and surrounding communities is extremely important. And there are plans Prepared and tested important to ensure the minimum loss in case of Crises. And the meaning of your interactions: CSR is about how to manage corporate business processes for the production of Positive overall impact on society. Companies need to respond to two aspects of its operations.

1. Quality management - in terms of people, processes

2. The nature and amount of impact on society in various fields most look at the outer circle what was done by the company in fact, a good or bad, in terms of products and services, in terms of their impact on the environment and local community, or how to treat and development of Workforce. From various stakeholders, and financial analysts and focused for the most part - as well as the financial performance of the past - the quality of Management as an indicator of future performance is likely.

Other definitions:

Corporate social responsibility is the obligation by trade to perform justly and donate to financial growth develop and recover the superiority of income of the labor force, and their family along with the local community and society in general " The statement give several identical facts to different understandings of this size Should mean a number of different communities in all parts of the world. As specified Like "corporate social responsibility to build capacity for sustainable livelihoods, and artistic differences and locate trade opportunity inside structure the skill of its employees, society and government "of Ghana, through the" social responsibility of companies and businessmen to give back to society "from the Philippines

on top of the additional tender, the European Commission hedge its bet through two definitions wrapped keen on individual: "A conception whereby firms make a decision willingly toward supply to a improved culture and a cleaner atmosphere. A idea somewhere organizations put together common and ecologically related in their industry plus within their interface among their stakeholders lying on a intentional source"

Social need Responsibility:

1. A company's approach to business philosophy of modern business, business organizations say it is responsible for social reasons problems.

2. as globalization of economic activity, global companies and MNC acting in a big way in the host countries. In order to establish good corporate image, corporate social responsibility to the target. Local communities are forced to follow the maintenance corporate identity.

3. In terms of cooperation agreements, often social together with interest require cooperation with adoption of corporate social responsibility.

4. On by law, companies must focus on social problems.

5. Corporate social service projects in your association excused from revenue board India.

6. An pledge to make public organizations responsible for the good corporate image, and the business community. Responsibility to allow the organization to improve business

7. Social suite of products, thereby increasing market share.

8. Very demand situation is often caused by natural disasters, accidents and so forth. For example, a gas leak at Union Carbide factory in Bhopal, where Company cash compensation for medical care CSR in the world today: CSR as a approach is flattering more and more significant meant for companies today, because of three streams.

Changing social expectations

CSR expect consumers and society in general, companies that buy products, growing sense in light of recent scandals, public trust and reduce business which reduced public confidence in the ability of the body's control over of regulatory and corporate clients. Increased wealth This happens on a national scale in developing countries, but also in comparison with developed countries nations. Wealthy consumers can afford to choose and buy products that you choose. Company investment required for the job and less likely to be strictly enforced regulations and punish organizations could build their business and money elsewhere.


He sees the growing influence of media on any "bugs" to be up to company's immediate public attention. In addition, the Internet fuels communication between groups that think and consumers can spread their message and give them a collective method of coordination (This boycott a product that is). Three trends and with them the marks and brands value for success (especially fashion brands) to produce a change generally and the relations between the company and consumers, in particular, and between business groups and stakeholders. The result is that mixtures of modern consumers better informed and feel more the right to take their views into action. From a business perspective, population parameters of the labor market are increasingly shaped by bottom-up campaign END. NGOs and consumer activist power, and often while driving, the altering association stuck between clients and business. CSR is of particular importance in a globalizing globe since of the technique Brands are build on the views, ideas and concepts, which typically calls for increased values. CSR is a way to match the corporate values and stakeholders and demand, when the values and requirements are constantly changing. It can therefore be described as CSR best overall approach to business. CSR creeps in all aspects of the business. This is something that today we should be real sincere. The risk of ignoring CSR is also risky while it is remember how significant be the total value of corporate brands, such as difficult to build brand strength, but as easy to lose the variety control. CSR be consequently too impressive with the purpose of the company should try to do it right implementation.

Implementation of CSR:

CSR policies are intended to show ways to integrate safe, "a social point of view" in all aspects of the business. The aim is to maximizing the true value and benefit to the organization, and a huge defense companies to invest in their brands CSR today calls on businesses to ensure that business operations are clean and fair, and contribute toward the culture during which they are represented. Otherwise they leave open to too much risk of potential consumer reaction. CSR is good business sense and comprehensive approach to conducting business in globalizing world, where companies increasingly rely on brand strength (Especially fashion brands in the world) to add value and product differentiation, and the activities of NGOs in consumption is driven by a steadily growing strategies. Many people think that how to integrate CSR in their everyday activities in long-term and strategic planning in order to define the business market near future. This will be the focal point of brand differentiation in terms of legal entity and product brands. The main points on the way to integrate CSR into all aspects of operations, including: commitment of management to provide the best, and especially the CEO\,communicated throughout the organization determine the position of corporate social responsibility at the strategic level of management decision-making process policy development and implementation• Develop relationships with relevant groups and interests (in particular Non-governmental organizations)• Social Inclusion and CSR in the company's annual audit report• Ensure that strengthens the system of compensation in the organization CSR policies have been created, not just the bottom line anonymous reviews / whistle-blower process, preferably supervision external ombudsman, will allow CSR Officer to work harder effectively is in today's society, they reflect the best value moves in a continuous and sensitive market environment in which they work. It is extremely important in order to meet ever more stringent and social information on the market for consumers, in particular, marks the movement front and center with a total value of the company.  Globalize lifestyle brand more to lose, if not the public perception of the brand live up to the interpretation of the image. Integration will be safe, "a social point of view" in all aspects of real value and maximize the organization's activities and to protect investors from taking large corporate companies brands. Type of activities carried out by companies in the sample perceived as socially responsible are: This is a donation to charity is a simple way to increase a reputable company to put the numerical value of "commitment" CSR Corporate philanthropy. McDonald's Ronald McDonald House "in order to improve the health and wellbeing of children and sponsor of the BP Portrait Award National Two examples of high-profile. Because it is very easy and friendly PR Company providing easily dismissed as PR exercise other forms of corporate social responsibility. In an attempt to respond to these allegations transfer companies, charitable donations less "partner" and to other activities.

Cause-related marketing such as "computers for schools" The great success of Tesco's promotional partnership between the company and charity, which charity organization's logo used in the campaign, marketing or promotion of trade promotion. Companies love, to attract target customers. Sponsoring awards Reebok Human Rights Award, Nestlé Social commitments Award and the award for Alcan Sustainable development is an example of high-end systems, Business Award sponsored. Allocation, the company set up in the industry, leaders of CSR simply putting large. Codes of business conduct are clear statements of "values" and standards of conduct - codes of conduct. Codes vary in content and quality from farm to farm, and for some or all of the following issues: treatment of employees, reliability of supply chain management and consumers, the impact of the community, the impact on the environment, human rights obligations, health and safety, transparency with suppliers and other issues. Some codes are monitored by external auditors. In many cases, the accounting bodies, such as Ernst & Young and PricewaterhouseCoopers. Social communication and environmental aspects of codes of conduct, report the results of social and environmental objectives set out by the company's efforts Shell6 with CSR. 77 largest global companies now produce CSR reports7 100th Reports that seek to improve corporate stakeholders, but the value is being questioned for several reasons: there are no points of reference to compare the performance of each company, is a matter of choosing the company, which led to accusations of spin, there are problems with verification, and the expectation that many stakeholders parties to benefit from these relationships are always wrong. Involvement of stakeholders from interested parties, individuals or groups affected by the activities of the company, for example, company employees, shareholders, customers, who live near the place of business, and the team from the supply chain. In some interested parties, leaving an empty chair representing interested parties who can not speak for themselves (such as the environment or future generations).However, decisions about groups of people, including interested parties and because the mechanisms by which they are bound, entirely in the hands of the company.

Community development investment fund as close to social projects, or reduce the negative impact on the "return" to the community and the local workforce. Community investment covers a wide range of initiatives, including health program, including, sponsoring school playgrounds or community centers, volunteer programs for employees, or by signing a memorandum of understanding with the communities affected by the company results. However, worries about companies taking public office and public places to private. (See chapter on privatization).

Eco-efficiency - Eco-efficiency was the phrase coined by the Business Council for Sustainable Development World Summit in Rio before describing the needs of enterprises in order to improve the economic and ecological performance8. The company has limited impact on the environment, especially in the highly visible aspects of its business or in areas where it makes financial savings, particularly popular practice among companies whose products are completely destructive to the environment. For example, the oil company to install solar panels on the roof of a gas station and reduce carbon dioxide emissions of its business at the same time remaining committed to continuing price increases for oil and gas. Investing in social company focused - According to the current trend of large multinational companies buy small companies have created ethics as an incentive to the main direction, such as the purchase of Unilever Wicopy Ben and Jerry's and the sun BP. In these cases, they are able to gain a reputation as a small enterprise, where there is a risk.

Benefits OF Corporate Social Responsibility:

Many organizations and corporate social responsibility and organizational leaders understand the importance of a positive impact on the organization. These benefits include:

Improve financial performance - it is known that corporate social responsibility and financial performance between the presence of a positive relationship.

To reduce operational costs - the initiative of a number of initiatives, including environmental and workplace-based noted that waste and inefficiencies or improving productivity by reducing costs can. For example, many initiatives gases, global changes that increases the efficiency of energy use to reduce water and electricity bills in order to reduce emissions contributing to climate.

To enhance the image and reputation of customer's -prestige brands and companies that are attracted to socially responsible company, which has the reputation of public companies to improve capital and business partners to increase the benefits.

Sales and increase customer loyalty - Studies indicate that there are companies that are socially responsible products and services to customers are a large and growing market.

Raise productivity and quality - works to improve the working conditions or environmental impact or lead to some of the staff to increase participation and decision making, and so often lead to increased productivity and lower error rate of effort. Companies that strong partnerships are seen as easy to recruit staff, and is found mainly in a tight labor market - • the ability to attract and retain staff increase. Decrease in sales volume of these companies maintains a high rate results and the associated costs for training and employment.

To reduce regulatory controls - companies that operate in legal practice and regulatory compliance checks and body at a high degree of freedom to meet.

Capital access - companies that have legal, ethical, and environmental and ease of access to capital pollute. Banks and financial institutions to provide funds when needed easily

Companies using CSR:


Nike is now one of global companies is addressed to a wide range of NGOs and journalists from the campaign as a symbolic representation of the company. In light of continued allegations, Nike has developed for the responses, with the support of a Web page reporting activities. I now well developed fire its corporate responsibility to improve conditions in factories agreement, the situation of carbon neutrality and sports available to young people around the world. The criticism continued, however Nike Inc. produces footwear, apparel, equipment and accessories for sports and sports products market. It is the major retailer of such fashion within the world sells about 19,000 points of sale in the United States and then in about 140 countries around the world.  Almost all products manufactured by independent contractors of footwear, particularly in developing countries. Report of the Global Alliance in factories in Indonesia gave the profile of employees as follows: 58% of them are immature adults among 20 as well as 24, plus 83% of women. Almost half of workers have completed high school. There are many work-related skills after arriving in the factory. 95% of workers in nine factories, participants received a salary or wage increases over the last year, according to the government's minimum wage and with few exceptions, based on wages in the factories in the region over the minimum wage - although critics note that the addition to not enough. What questions? Nike has about 700 contract factories, which represents approximately 20% of workers in the creation of Nike products. Conditions for these workers was a source of heated debate, the claim from the country because of poor conditions, harassment and abuse are common. Nike has sought to respond to complaints of code for each of its suppliers, along with operational by the international association for change about 21 factories and to collect and answer questions. In Indonesia, reported the following: 30.2% of employees have had personal experience, and 56.8% were found, and name-calling. On average, 7.8% of workers receiving unwanted sexual comments, and 3.3% were physically abused. In addition, the trade reported sexual practices in the recruitment and promotion, at least two operators in each of two different objects, even if the subsequent investigation was unable to confirm. 73.4% of personnel be pleased through their relationships with direct supervisors, 67.8% were satisfied with management. So far, the main concerns of workers from their physical environment. Another report received on the situation in Mexico, experienced serious problems arising out of work. Inside equally belongings, Nike respond toward the inspection statement along with detailed improvement plan. What the critics say? Naomi Klein, a widely read book "No Logo" applies quite broadly in line with Nike, accusing them of the resignation of the country, they have developed better wages and labor law for countries such as China, where less than cost. Points to the picture published in 1996, showing children stitching footballs in Pakistan, as Nike used for the child. Other critics suggest that Nike to distribute all of its factories and to provide an independent audit to verify whether the conditions. Any checks should be made public, Nike. There is a lot of attention to the wages paid by the company's suppliers. Overall, it was found that the minimum wage rates above the national law, but critics say it is not really a fair wage for life.

What Nike mean?

Nike says they have not abandoned the country, technical assistance and stay in Korea, Taiwan, in spite of higher wages and workers' rights. They concluded that the photographic record of 1996 describes it as a "serious mistake" when he started the first provider of balls in Pakistan. They now work centers in which the sewing is not using children to test. Nike I believe that the share location of the factory by independent third parties on a confidential basis in order to monitor their supply chain properly. They argue that the disclosure of the names of factories, as well as information on the control plants can be used by non-governmental organizations to simply make additional attacks, and not as part of the interview to help the company continue to write and solve problems. As for wages, Nike believes that the creation of what constitutes a "fair" compensation for all as easy as you would have believed his public criticism - and denigrate the fixed salary equivalent in U.S. dollars, which are meaningless due to the cost of living in these countries. Nike also clearly afraid of the way in which acquired the status of the initial focus in this area. They ask that people turn to their competitors and see how many of these type of actions the company in recent years. Does anyone support for Nike? Global Alliance is completely free. He said: "After due consideration, Council members unanimously on which judgments of science operations of the alleged violations, which appeared in the Global Assessment Alliance, Nike has acted in good faith, a serious and reasonable plan for remediation."

Nike approach to CSR:

Labor activist Jeff Ballinger Nike contempt of corporate social responsibility (CSR), public awareness campaigns profitability. He told the Corporate Crime Reporter "CSR is the cost Nike about $ 10,000,000 U.S. $ 12,000,000 per year, but for the employees and the costs of CSR, sustainable development of the meetings of the world to have two or three people at each meeting with Nike. I gave 75 cents for every pair of shoes for the worker, who will solve the problem. If the employees of Nike, instead of 75 cents more for shoes, you know what Nike will cost than the cost of RSI? That their cost of 210 million U.S. dollars annually. "In June 2007, announced that Nike told the Oregonian that his campaign is no longer just CSR as an instrument of risk management and reputation ", but" the purpose of the activity. "Core Jeff Ballinger was skeptical." In the battle of 15 years, the working conditions for the 800,000 factory workers - mainly Asian women under 24 - has not helped in the Nike company to 14.9 billion dollars, Ballinger argues the activists won Round 1 and the return of the Nike race in the 2nd round. Sting's code of conduct, monitoring of factory conditions ineffective, but the accompanying PR campaign was brilliant, "wrote the Oregonian. Nike is finally acknowledging the monitor does not work," but says it "needs more time." Nike wants until 2011 to eliminate excessive overtime. "Indonesian newspapers were writing [the problem] in 1988" indicates that Ballinger.

Nissan approach to CSR:

Driven by the vision of enriching people's lives, Nissan aims to create value by providing products and services. Through our activities around the world, also aims in the direction of donate toward the culture within which we control. For this purpose, management and sustainable development of both Nissan and profits is essential for the development of society. As part of CSR principles in our approach to management is an effective way to make the conclusion of the compensation. We believe that it is also a way to build relationships of trust with our various partners.

Nissan's CSR thinking:

In recent years, the company argues that its activities in accordance with the principles of corporate social responsibility. Many companies are focusing on CSR activities, in response to the voices of society. However, in countries of various corporations and other organizations, a wide range of definitions and methods for promoting corporate social responsibility in this area. Debate continues about the true nature of the social responsibility of companies operating globally. At Nissan, we are using CSR as a management tool in the search for sustainability in three areas of our business. Nissan CSR Policy and the eight key We set out our approach to CSR Nissan CSR management policy and the establishment of the eight key areas to focus efforts in this field. We also create a CSR Steering Committee, consisting of 20 middle managers in a section of these areas as a way to organize and keep track of developments in all sectors across the enterprise. Nissan CSR Policy Ethical behavior is a strong corporate governance a high level of transparency and a clear emphasis on diversity is the foundation of our business around the world. Our goal is to further increase your profits, while actively contribute to the sustainable development movement and the public. We listen and work with interested parties around the world and trust and to create lasting value in the long term. Nissan CSR Policy helping to create value for all stakeholders, in line with our vision, mission, and the Nissan Way. Eight key areas Nissan CSR scorecard uses as a basic tool for monitoring and evaluating progress. The list applies to each of the eight key areas, in the presence of values and indices Nissan management puts on activities take place and that it sought population of companies. Enter our values and indices, which could play stronger in the middle of our long-term commitment to our actions, are in accordance with the will of society. In this way represent a scorecard on the horizontal axis are looking for a balance between economic growth and healthy development of our society to society, and on the vertical axis we hope to achieve a balance between the various stakeholders that the value is unavailable. Nissan is also working to form the third part of the balance between the perspective of short-and long-term, based on a global perspective on both the horizontal and vertical axes, as described above. Each year, review the contents of the CSR board, including an assessment of our performance in achieving its objectives. Since 2007 he published a report on the pages of this report.


CSR has a number of advantages for developing business like companies implement this strategy to overcome its declining products in order to make the PR of the product in the market and in front of the consumers they use this approach

for example: Unilever mostly apply this CSR approach to its products like kala kola hair colour is declining and unsuccessful product in the market so they used to merge it with their running product and promote it like free or at half price with any successful product to make the PR of the product in the market.


The disadvantages of CSR include negative public relations due to unfulfilled promises and demands or claims and overhead cost for the implementation of CSR related activities and management.


All respondent companies claim to have conducted a broad and deep scan of the NGO and Stakeholder environment relevant to their business operations. Most engage stakeholders and NGOs formally in order to understand and assess expectations of their CSR measurement and reporting. However, we sense a real paradox here of companies wanting standardization of the information required of them but vociferously rejecting a "one size fits all" approach to CSR measurement and reporting. In addition, social and environmental reporting was separate from their financial reports across all the firms we interviewed. If the core idea of the triple bottom line of company reporting (improved financial, social and environmental transparency) is to be achieved, then an integrated approach to such reporting (and measurement) across the three areas is required. Finally, the development of our performance framework, derived from theory and the empirical work with our respondents, makes a contribution to instrumental CSR theory. Our CSR policy and practice findings extend those of Wood and Jones (1995) as to how firms define their areas of social responsibility and identify the difficulties firms have in setting priorities between stakeholders, as set out by Mitchell, Agle and Wood (1997).


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