Corporate Social Responsibility and Social Issues for Deployment Muhammad Saad Salman ROLL NO: 023 MBA

(1.5)

Abstract:
People tend to think their companies are doing a pretty good job in the CSR arena, and that perceptions of organizational corporate citizenship matter to employees, though not as much as other key factors such as overall satisfaction with the job. Even for companies that find themselves struggling to do more during lean times, there are things that can be done to make the most of whatever resources are available to devote to CSR. Organizations that are investing in CSR should leverage that investment to improve both employee perceptions of the organization and customer perceptions. First, communication about the CSR investment and what the tangible positive outcomes are of that investment will help employees better understand the contributions the organization is making. After all, employees cant be proud of something they arent aware of. Additional communication about CSR initiatives is likely to be especially important for those at the lower levels in the organization who report lower levels of perceived CSR and organizational commitment. They might not be aware of all of the CSR initiatives. It is easy for high level managers to forget that not everyone knows what they know. Organizational leaders should publicize these efforts this will maximize any internal benefits of CSR. At the same time, your employees will detect if youre making much ado about nothing. Be sure that the programs and policies are actually making a difference (e.g., show how much money or paper is saved through initiatives to reduce paper waste), and that you really have something to root the company horn about. In addition to publicizing the organizations CSR efforts, get your employees involved. When possible, provide opportunities for employees at all levels to give input about which types of initiatives are important to them, and to participate in the efforts. Companies that do CSR well are those that have it embedded in employees jobs. There are multiple advantages to doing this. Employees may come up with really innovative ideas for how to make a positive impact in the community and meet a business need at the same time. Also, investing in the initiatives that are important to your employees will increase the importance they attach to CSR, and the commitment they have to your organization. Getting your employees involved in this way is consistent with the principles of participative management, and the idea that employees prefer work environments where they can make a contribution to work they find meaningful.

TABLE OF CONTENTS
1. INTRODUCTION 1.1 Corporate Social Responsibility (CSR) 1.2 Need and Importance of CSR 2. Literature Review 2.1 History of CSR 2.1.1 1950s & 1960s: Modern era of social responsibility 2.1.2 1970s & 1980s: Four Part Definition of CSR and research 2.1.3 1990s to present: new themes emerge, embracing CSR 2.2 Organizational Growth through CSR 2.2.1 Satisfied employees 2.2.2 Satisfied Customer 2.2.3 Positive Public Relations 2.2.4 Cost Reduction 2.2.5 More Business Opportunities 2.2.6 Long Term Future for you Business 2.3 Issues in organization 2.3.1 Market Place 2.3.2 Environment 2.3.3 Workplace 2.3.4 Globalization and Market Forces 2.3.5 Geographical 2.3.6 Public Policies 2.3.7 Regulations 2.4 CSR at Workplace 2.4.1 CSR to resolve employees issues 2.4.2 CSR to manage diversity 2.4.3 CSR for gender Discrimination 2.4.4 CSR for sexual harassment

3. Conceptual Framework 4. Analysis 5. References

Introduction:
1.1 Corporate Social Responsibility (CSR):
CSR involves economic, legal, ethical issues. A company must generate profits, while operating within the laws of the state. The company must also be ethical. The levels of social responsiveness include being reactive, delicate and interactive. All terms are useful in the management decisions. The selection of when and how it is possible to act can make a difference to the result of the measures taken. [1]

actions are at best superficial manifestations of CSR. Restricting CSR to philanthropy can even have a negative impact on the organizational climate. For example, employees may become cynical if it becomes apparent that while the organization is generous in terms of charities, it does not express adequate sensitivity to working conditions or employees' safety; the public might become critical if it turns out that the organization does not show responsibility to environmental issues. [2] Why is CSR so important? Most importantly, findings from scientific research are becoming increasingly clear with regard to how CSR is essential for the long-term sustainability of a firm. Firms that blindly and narrowly pursue the profit motive, without concern for the broad spectrum of Stakeholders that are relevant to the long run, are increasingly shown to lack sustainability. But its not only important to realize the importance of these groups. Firms must also be able to connect the dots and understand how various Stakeholders, and the satisfaction of their needs, represent interrelated challenges. For example, the strategic management of human resources is related to customer satisfaction, and it is essential for firms to attempt to understand and deal with this connection. Most executives and policy-makers have a feel for CSR and its potential importance. However, too often they tend to select one isolated issue, mistakenly refer to it as "CSR Management", and attempt to magnify it and use it for advertising or marketing purposes in order to improve a firms image. In addition, managers may miss the "big picture" while engaging solely in a strictly rational or economic decision-making process in an attempt to determine the precise return on investment for money put into CSR. What it is and its complexities, they might be better advised to not even concern them with it. Managers should have a genuine or authentic desire to pursue CSR in order to truly realize its benefits for themselves, their firms, and stakeholder groups. [3]

1.2 Need and Importance of CSR:

Corporate social responsibility (CSR) is a theme that is increasingly capturing the interest and imagination of the people in the business world. However, despite all the attention it has given to this theme, there is still much confusion. The objectives of this article are brief and concise to add clarity to the understanding of CSR. CSR binds new management concerns such as key strategic planning and organizational development, human resources management, risk management, supply chain management and ongoing operations. CSR addresses three specific issues: (1) What exactly is CSR? (2) Why is CSR so important for the business world to consider? (3) What should corporate decision-makers and leaders do in an attempt to properly manage CSR?

CSR is not all about philanthropy or doing charity services for the community. This is not to say that such activities are unimportant. These actions on the part of a firm can help establish good relations with community members and leaders; however philanthropy and related

Literature Review:
2.1 History of CSR:
The history of corporate social responsibility stretches back for centuries; however the best documented information regarding the impact of business on society begins in the 1950s. Formal writing was published primarily in the United States, although footprints of CSR are evident throughout the world. Probably the most quoted antagonist of CSR, the famous Chicago economist Milton Friedman, actually saw its benefits. The infamous quote from Friedman, Businesss primary responsibility is to make money emphasizes the pragmatism of this scientist; however, the quote in its entirety was the fundamental responsibility of any business in a free-enterprise system is to make a profit while conforming to the basic rules of society, both those embodied in the law and those embodied in ethical customs. [4]

2.1.2 1970s & 1980s: Four Part Definition of CSR and research
In 1970, the most famous definition of CSR was brought forth by Archie Carroll. In this era it was suggested that businesses should significantly emphasized corporate philanthropy and community relations. Business has a multiplicity of interests including stockholders, employees, suppliers, communities and the nation as a whole. The idea that business must include anyone other than the specific stockholders leads to the development of stakeholder theory. Stakeholder theory states that businesss responsibility extends beyond groups with only financial investment and includes those with any relationship with the business. These groups include employees, customers, professional partners and local communities. Business must first emphasize economic functions. This component is followed by increase their awareness of changing societal values (environmental conservation, fair wages). Finally businesses must become more broadly involved in actively improving the social environment (poverty, urban blight). The growing interest in operationalizing CSR attempted to tie financial performance and benefits to socially responsible activities of the business. [6]

2.1.1 1950s & 1960s: Modern era of social responsibility

The modern era of corporate social responsibility begins in this decade with the publication of Howard R. Bowen, Social Responsibilities of the Businessman. This and future publications earned him the unofficial title Father of Corporate Social Responsibility. Bowens work established the initial definition of social responsibilities of business as the obligation of business to operate their activities in line with objectives and values of society. The idea that business should think of its actions beyond pure profit resonated with businessmen of the era. The CSR literature of the 1960s continued efforts to define social responsibility. A prominent writer of this time, Keith Davis, developed the well-known Iron Law of Social Responsibility, which states that the emphasis of social responsibility in a business correlates to the size of the business. The larger the business, (or more accurately, the larger the impact a business has on society), the larger the amount of responsibility it has to society. [5]

2.1.3 1990s to present: new themes emerge, embracing CSR

With CSR as an accepted part of the business world, the 1990s emerged as a time of theory expansion and new models. These include corporate social performance (CSP), business ethics theory and corporate citizenship. As the economic heyday of the internet age blossomed the ability of firms to contribute financially increased. CSR programs became commonplace. [7]

2.2 Organizational Growth through CSR

Investing in small businesses to stimulate economic growth across the globe; allowing employees to take paid time off to volunteer in their communities; providing scholarships to students who are the first in their families to go to college; setting corporate goals to reduce carbon emissions; these are just a few examples of how one multi-billion dollar company is demonstrating its commitment to corporate social responsibility. [8] Organizations grow by deploying CSR, Following are the reasons that why CSR plays an important role in organizational growth:

Companies reduce costs by: (i) More efficient staff hire and retention (ii) Implementing energy savings programs (iii) Managing potential risks and liabilities more effectively (iv) Less investment in traditional advertising

2.2.5 More Business Opportunities

A CSR program requires an open, outside oriented approach. The business must be in a constant dialogue with customers, suppliers and other parties that affect the organization. Because of continuous interaction with other parties, your business will be the first to know about new business opportunities.

2.2.1 Satisfied Employees

Employees want to feel proud of the organization they work for. An employee with a positive attitude towards the company is less likely to look for a job elsewhere. It is also likely that you will receive more job applications because people want to work for you. More choice means a better workforce. Because of the high positive impact of CSR on employee wellbeing and motivation, the role of HR in managing CSR projects is significant.

2.2.6 Long Term Future for your Business

CSR is not something for the short term. Its all about achieving long term results and business continuity. Large businesses refer to: shaping a more sustainable society

2.3 Issues in Organizations while implementing CSR:

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

2.2.2 Satisfied Customer

CSR improves customers attitude towards the company. If a customer likes the company, he or she will buy more products or services and will be less willing to change to another brand.

2.3.1 Marketplace
(i) Value of your product/service (ii) Cost imposed on society (iii) Selling approach is appropriate according to that society or not (iv) Suppliers play a vital role (v) Competitors [9]

2.2.3 Positive Public Relations

CSR provides the opportunity to share positive stories online and through traditional media. Companies no longer have to waste money on expensive advertising campaigns. Instead they generate free publicity and benefit from word of mouth marketing.

2.3.2 Environment
(i) (ii) (iii) Consumption of Energy Waste management Contribution to greenhouse gas emission through energy use and other parts of your process Use of raw materials, both nonrenewable and renewable resources

2.2.4 Cost Reduction

A company can reduce costs through CSR.

(iv)

(v)

Potential for environmental accidents (release of pollutants into air, water or land) [10]

2.3.3 Workplace
(i) Work-life balance of your employees (ii) Managing diversity in the workforce (iii) Training, development and life-long learning (iv) Eradicating abusive or bullying behavior (v) Gender discrimination (vi) Harassment (vii) Cultural problems (viii) Health and safety problems

defined concept of CSR and difficulty for corporate regulation (iii) The perpetual differences embedded in the social, political, cultural, and economic structures within individual countries [12]

2.3.6 Public Policies

(i) Government Policies (ii) Corporations Policies (iii) Public Service Policies [13]

2.3.7 Regulations
(i) (ii) (iii) (iv) Foreign Policies Taxation Rules Import/Export Policies Labor Laws [14]

2.3.4 Globalization forces

and

market

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. 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. [11]

Although many companies are investing in CSR but it is not possible to implement same CSR policies in all regions of the world. Companies have to face many problems in implementing CSR because they have to invest a lot of money. When companies move out of their homeland they have to look in that countries environment where they are moving like they have to look their market trends that what is going in the market right now and how they can gain market share and most importantly how they can implement CSR activities in that region. Sometimes, the policies of companies dont match with the policies of foreign government then they have to change their policies according to that company. In all that, workplace is the most important area which needs to be cater very carefully because only a companys staff can produce more profits for company. So, company should focus more on workplace environment.

2.3.5 Geographical
(i) CSR behavior is not similar in various parts of the world (ii) Immense geographical separations feasibly contribute to the loosely

2.4 CSR at Workplace

When a company has CSR initiatives, employees are more proud of and committed to

the organization. This is because their personal identities are partly tied up in the companies that they work for. If their company is saving the world, they too, so their association with the company reflects positively on them and makes them feel good about the work they do for the company. [15] Employees perceptions of their organizations concern for community and environment is linked to their level of organizational commitment. Even after controlling for a whole host of relevant variables, perceptions of CSR make a unique and positive contribution to overall commitment. That is, the higher an employee rates their organizations corporate citizenship, the more committed they are to the organization. Organizational commitment has been linked to favorable outcomes for companies including increased job satisfaction, reduced intentions to turnover, and increased job involvement. [16] [17]

successful companies should attract, retain the best work force. By creating a good working environment and developing the internal marketing strategies, companies can stimulate productivity and satisfaction among employees. If employees are satisfied and attach the company, they will recommend to friends and family as a good employer. [21]

2.4.2 CSR Diversity

to

manage

Gender

2.4.1 CSR issues:

to

solve

employees

Companies are starting to engage in CSR activities in order to respond to an external demand, and also taking into consideration the positive effects of CSR. On the other hand, their CSR activities have an impact on current employees commitment towards their employer and on the attractiveness of an employer in the mind of prospective employees. Also, it is highlighted that employees have sufficient power, legitimacy, and urgency to become salient stakeholders to management, therefore they are considered to be a relevant group of stakeholders for each organization.[18] [19] [20] The role of corporate social responsibility on employees is becoming more present in the business world, one of the reasons being that

Gender diversity within senior management teams has become an increasingly topical issue for three related reasons. First, although the proportion of women at board level generally remains very low, it is changing. Only 41% of women are on boards at the end of 2005, but this had increased to 59% by the end of 2011. Second, government intervention in this area has increased. In the past five years (2005 2011), seven countries have passed legislation mandating female board representation and eight have set non-mandatory targets. Third and most interesting, the debate around the topic has shifted from an issue of fairness and equality to a question of superior performance. If gender diversity on the board implies a greater probability of corporate success, then it would make sense to pursue such an objective, regardless of government directives. In Figure 1 we detail the proportion of companies within each sector that have zero, one, two or three or more women on the board. Broadly speaking, sectors that are closer to final consumer demand (for example, Healthcare and Financials) have a higher proportion of women at board level. Heavy industry and Information Technology (IT) have a much lower proportion of women board members. More than 50% of the IT and Materials companies in our sample universe have no women on the board. [22]

Figure 1: Proportion of companies in each sector split by number of women on the board (end2011) [23] The dispersion in female representation is more significant at market and regional level than at sector level. As we illustrate in Figure 2, 72% of the companies listed in Emerging Asia, within our sample, have no women on their boards compared to only 16% of the companies listed in North America. The picture is amplified if we consider greater degrees of gender diversity. For instance, there is a greater proportion of European companies with three or more female board members (27.6%) than there are European companies with no women on the board (16.3%). Meanwhile in Asia and Latin America, the number of companies with three or more women on the board is insignificant. Many of these differences reflect local legislation. Various European governments have set mandatory or non-mandatory targets for female board representation over the past five years and this has driven the numbers for the region to higher levels. [24]

Figure 2: Proportion of companies in each region split by number of women on the board (end2011) [25]

A number of trends are driving businesses to actively consider employee diversity as a strategic business advantage, such as: the need to remain competitive, demographic shifts and labour shortages, immigration and globalization. Diversity goes well beyond employment equity legislation, quotas and targets which characterized the discussion of equal employment and affirmative action of the last few decades. Todays approach to diversity is about inclusive organizations that value differences, rather than simply tolerating them. Companies that recruit for, and manage, diversity can tap into innovative business and marketing opportunities that come with diverse perspectives, and can better understand the needs and requirements of their changing customer base. Including people from all communities regardless of gender, ethnicity, disability, age, sexual orientation or belief can be a source of competitive advantage. Think of it this way: diverse staff are the point of contact between the business and the customer; they contribute to product and service design decisions; and they participate in business strategy where market and entry strategy decisions are made. Employees from different backgrounds and groups can help you better understand and serve your customers. There are two stages to developing a diverse workforce: the first step involves adapting your hiring practices to achieve greater diversity; the second is to manage the diversity to leverage the benefits to your employees and your firm. If poorly managed, diversity can be a source of frustration, anger and even fear for employees, fostering an unhealthy workplace and limiting the benefits and opportunities that are possible. Effective diversity management requires a commitment from company leaders, along with policies, training, supports, and an action plan, much as any other area of business strategy. Complaints need to be investigated quickly and confidentially and all employees need to be held accountable for their behaviour. This can help to promote a respectful workplace that values differences.

Businesses that hold managers accountable and measure results achieve the most from their diversity commitments. Bringing people of diverse backgrounds and interests together in ways that maximize fair and equal treatment and opportunity can bring out everyones best for the full benefit of the firm and staff, and ultimately your customers.

2.3.3 CSR for Gender Discrimination:

Companies reporting on gender equality was for many years confined to the reporting of policies, along with some program information. Increasingly, there are CSR initiatives that promote gender impact reporting so that companies will improve their understanding of gender in their business and put in place more effective systems to strengthen their business benefits. These initiatives also seek to improve company transparency with regard to gender impacts, enabling stakeholders to better engage with corporates on these issues. Reporting offers a means to improve monitoring and evaluation efforts, identify opportunities for continuous improvement, and directly access some of these business benefits. For example, gender impact reporting can a) Aid companies in recruiting, retaining, and motivating female employees, thus optimizing human resource management b) Strengthen a companys reputation as a women-friendly enterprise and thereby attract consumers and investors that are driven by ethical interests c) Improve brand-differentiation by targeting women customers or groups concerned with womens interests d) Reduce the risk of negative publicity and reputation damage Three main drivers motivate firms towards addressing, and reporting on, gender equality: a) The Market including consumers, investors, business customers, and labor market pressures

b) Governments including regulatory requirements and compliance with equal rights legislation and supplier diversity requirements for government contracts c) Civil Society including those that look to maximize shared benefits to the corporation and community stakeholders, as well as media pressure. A broader understanding of gender and CSR extends to other business dimensions and impacts to consider, such as a) Gender impacts of products and services b) Innovative approaches to product development using gender information c) Gender issues in supply chain labor practices d) Gender issues as part of company community and human rights impacts e) Community development and philanthropy efforts that build on input from women and respond to genderspecific needs in the community

b) Many enterprises, particularly smaller businesses, dont have the capacity or confidence to report on gender performance, in some cases due to a lack of specific guidance for their region, sector, or the nature of their business. c) Linked to the drivers motivating companies to report on gender, the disclosed information is often not systematic or comparable across companies within a country/region or industry. d) When legislation mandates gender equality, this is not necessarily accompanied by requirements for standardized reporting on performance and public disclosure of this information. [26]

2.3.4 CSR to Help Eliminate Sexual Harassment

Many companies have implemented CSR at their workplace to stop sexual harassment because both genders should be treated equally in order to attain success. On average, men and women tend to rate the CSR of their organizations about the same, that is, both groups tend to think that their organizations are doing pretty well as corporate citizens. However, the relationship between perceptions of CSR and organizational commitment is different for women and for men. The relationship between CSR and commitment is stronger for women than it is for men because women are concerned about their social relationships. Women work well when they have security of their both work and personal life. [27] [28]

Current challenges in CSR reporting on gender

a) While some corporations value being seen as gender-reporting champions and seek to disclose information on key gender indicators, others are more reluctant to report on gender impacts due to possible negative perceptions of their performance.

3. Conceptual Framework:

Figure: Framework of the Ricoh Group's CSR

This framework shows two-tier CSR activities based on the three ideas constituting the foundation of CSR: the first tier involves basic social responsibilities and the second tier involves voluntary social responsibilities. aim to build public trust through our first tier activities and enhance companys attractiveness through

second tier activities and by achieving these goals simultaneously to increase the value of the company. The four key areas specified in the above CSR Charter: integrity in corporate activities, harmony with the environment, respect for people, and harmony with society.

4. Conclusion:
Corporate social responsibility is a form of corporate self-regulation integrated into a business model.

5. References