CSR and Social Issues

UNIVERSITY OF ENGINEERING & TECHNOLOGY

INSTITUTE OF BUSINESS AND MANAGEMENT

CHANGE MANAGEMENT ASSIGNMENT: 3

SUBMITTED TO: Dr. FAREEHA ZAFAR SUBMISSION DATE: 27TH OCT, 2013

SUBMITTED BY: Muhammad Saad Salman ROLL NO: 023

CSR and Social Issues

Topic: CSR and Social Issues for Deployment Company: Baskin Robbins Countries: USA, Central Asia and Malaysia
CSR:
Corporate social responsibility involves economic, legal, ethical and discretionary aspects. A corporation needs to generate profits, while operating within the laws of the state. The corporation also needs to be ethical. Levels of corporate social responsiveness to an issue include being reactive, defensive, responsive and interactive. All terms are useful in issues management. Selecting when and how to act can make a difference in the outcome of the action taken.

Following are the issue which a company has to face in implementing CSR in any country:

1. Marketplace:
Value of your product/service in that country Cost imposed on society Selling approach is appropriate according to that society or not Suppliers of that country play a vital role Competitors Consumption of Energy Waste management Contribution to greenhouse gas emission through energy use and other parts of your process Use of raw materials, both non-renewable and renewable resources Potential for environmental accidents (release of pollutants into air, water or land) Work-life balance of your employees Managing diversity in the workforce Training, development and life-long learning Eradicating abusive or bullying behaviour Gender discrimination Harassment

2. Environment:

3. Workplace:

CSR and Social Issues

Cultural problems Health and safety problems

4. Ethical consumerism:
The rise in popularity of ethical consumerism over the last two decades can be linked to the rise of CSR. As global population increases, so does the pressure on limited natural resources required to meet rising consumer demand (Grace and Cohen 2005, 147). Industrialization, in many developing countries, is booming as a result of both technology and globalization. Consumers are becoming more aware of the environmental and social implications of their day-to-day consumer decisions and are therefore beginning to make purchasing decisions related to their environmental and ethical concerns.

5. Globalization and market forces:

As corporations pursue growth through globalization, they have encountered new challenges that impose limits to their growth and potential profits. Government regulations, tariffs, environmental restrictions and varying standards of what constitutes "labor exploitation" are problems that can cost organizations millions of dollars. Some view ethical issues as simply a costly hindrance, while some companies use CSR methodologies as a strategic tactic to gain public support for their presence in global markets, helping them sustain a competitive advantage by using their social contributions to provide a subconscious level of advertising. (Fry, Keim, Meiners 1986, 105) Global competition places a particular pressure on multinational corporations to examine not only their own labor practices, but those of their entire supply chain, from a CSR perspective. That all government is controlling.

6. Geography:
CSR behaviour is not similar in various parts of the world Immense geographical separations feasibly contribute to the loosely defined concept of CSR and difficulty for corporate regulation The perpetual differences embedded in the social, political, cultural, and economic structures within individual countries Government Policies Corporations Policies Public Service Policies Foreign Policies Taxation Rules Import/Export Policies Labour Laws

7. Public Policies:
-

8. Regulations:

CSR and Social Issues

Baskin Robins:
Baskin-Robbins was founded in 1945 in Glendale, California by Burton Baskin and Irvine Robbins, ice cream enthusiasts and brothers-in-law, whose passion inspired what is now the world's largest chain of ice cream specialty shops. What was once a selection of 31 flavors Baskin-Robbins 31 stands for a different ice cream flavor for each day of the monthhas grown to more than 1,000 in its flavor library.

Nutrition:
Review current menu portfolios and identify nutritional gaps and new product opportunities by 2013 Establish nutrition filter and goals Revise website to include nutrition content by 2013 Review and explore Dunkin Brands advertising practices that may reach younger audiences to encourage balanced lifestyle options Continue to look for ways to incorporate better-for-you choice options on Dunkin Donuts and Baskin-Robbins menus

Packaging:
Test a reusable mug program option for iced beverages in 2011 Pilot test in-store foam cup recycling program by 2013 Complete testing of Baskin-Robbins PS pink spoon alternatives with plans to transition to a more sustainable material brand-wide by 2013 Develop a comprehensive strategy in 2012 to achieve a sustainable cup solution Convene an external working group comprised of external SMEs such as researchers, other EPS foam users within the industry and suppliers Develop clear goals and timeline for internal and external working groups Formalize internal cross-functional working group Develop a holistic packaging scorecard for use with all suppliers to drive continuous improvement on environmental impacts Perform waste/recycling audit on sample DD and BR restaurants, and seek diversion opportunities for top three waste items

Sourcing:
Establish an animal welfare policy by 2013

CSR and Social Issues

Complete feasibility and research of available quantities of cage-free eggs and gestation crate-free pork by 2013 Explore sourcing an additional certified commodity in 2012 Reassess the Supplier Code of Conduct to ensure alignment with core human rights principles and high sustainability standards Work to understand how the company can ensure compliance with the Code and integrate its elements more clearly into RFPs and procurement decisions Develop a holistic approach to sustainable sourcing of commodities that balances cost with sustainable filters Create a sourcing filter to guide future purchases and establish goals for its use

Building:
Develop estimated baseline of energy spend in US Dunkin Donuts restaurants Develop energy efficiency recommendations and implementation plan for U.S. Dunkin Donuts restaurants 2 members of DBI Design and Construction Services Department to achieve full LEED Accreditation by 2011 Incorporate improved sustainable materials into Dunkin Donuts new store design in 2012 Open second green Dunkin Donuts restaurant in St. Petersburg, FL in 2011, targeting LEED certification Utilize Dunkin Donuts learnings to improve the sustainability of Baskin-Robbins stores Reduce franchisee utility costs Reduce carbon footprint Create sustainable building filter and goals for new construction in 2012

People:
Continue to introduce training programs that improve the guest experience and business results at the restaurant level Launch supplemental leadership training programs and feedback mechanisms to support leadership development across all levels of the organization Develop and communicate an Employee Value Proposition for corporate employees by 2012 Reassess our New Franchisee Training process to ensure new franchisees have the tools to be successful. Introduce revised learning path by 2013 Launch an employee engagement survey Develop a long-term strategy on diversity and multicultural initiatives

CSR and Social Issues

CSR in Malaysia:
Following are the issue due to which Baskin Robin has not implemented CSR yet: Malaysia is not the member of OECD yet. People are less aware about the CSR but their demands are increasing day by day due to growing awareness Baskin Robin has not grown so far in Malaysia

CSR and Social Issues

References:
1. Mallen Baker (2013) Corporate Social Responsibility, Available at:http://www.mallenbaker.net/csr/Marketplace.html (Accessed: 25th October 2013). 2. Mallen Baker (2013) Corporate Social Responsibility, Available at:http://www.mallenbaker.net/csr/Environment.html# (Accessed: 25th October 2013). 3. (24th October 2013) Workplace Issues, Available at:http://www.csrwire.com/categories/7-Workplace-Issues/press_releases# (Accessed: 25th October 2013 4. Eisingerich, A.B.; Rubera, G.; Seifert, M.; Bhardwaj, G. (2011). "Doing Good and Doing Better despite Negative Information? The Role of Corporate Social Responsibility in Consumer Resistance to Negative Information". Journal of Service Research. 14 (February): 6075. 5. Grace, D., S. Cohen (2005). Business Ethics: Australian Problems and Cases. Oxford University Press. ISBN 0-19-550794-0. 6. Fry, L. W.; Keim, G. D.; Meiners, R. E. (1982). "Corporate Contributions: Altruistic or for Profit?". The Academy of Management Journal 25 (1): 94106. 7. Muller, Alan; Gail Whiteman (February 2009)."Exploring the Geography of Corporate Philanthropic Disaster Response: A Study of Fortune Global 500 Firms". Journal of Business Ethics 84 (4): 589603. 8. Knopf, Jutta. "Corporate Social Responsibility National Public Policies in the European Union".European Commission. Publication Office of The European Union. Retrieved 10 February 2013. 9. Dunkin' Donut (September 12, 2013) Baskin-Robbins Press Kit, Canton, MA 10. Dunkin' Donut (2012) Focused on Sustainable Solutions, 2012 Corporate Social Responsibility Report , USA: Dunkin' Donuts 11. Carroll, A (1999), Corporate social responsibility: evolution and definitional construct, Business and society, vol. 38, no. 3, pp. 268-95.