Tuesday 17 April 2012

Social Corporate Responsibility

Corporate social responsibility is a 'commitment to improve community well-being through business practices and contributions of corporate resources' (Kotler et al, 2005). These commitments to improve community well-being should be a voluntary commitment that a business chooses to implement. Corporate social responsibility is about understanding 'your business impact on a wider world and considering how you can use this impact in a positive way' (Anon, 2011).
(Mullins, 2007) described corporate social responsibility as a concept which gives rise to how a company should conduct itself within a society, and different views on what a business is for and how it should act. Social responsibilities arise from the interdependence of organisations, society and the environment.

Good examples of social responsibility at the corporate level can be found in varied ways. It is possible for companies to practice good social responsibility without compromising investor demands for profitability. In other words, having a good moral compass is not impossible in today's demanding global economy.
An example is the Fair Trade Policies:
- The area of enforcing fair trade practices is an area that demonstrates a good corporate moral compass. Some corporations resist the temptation to gouge the general public with unnecessarily high process for items that are essential to life itself. Ethical pricing practices represents a great opportunity for any corporation to demonstrate their concern for the social welfare of their trade areas.
Another example is the Green Policies:
- This example is far from universal, but great social responsibility is demonstrated by those corporations that are employing environmentally friendly technology in attempts to help preserve our environment. Third world manufacturers who continue their polluting ways demonstrate their total lack of concern for social responsibility. Refusing to deal with pollution manufacturers is a great example of exhibiting good social responsibility.

The Hidden Face of Primark Scandal (McDougall, 2008) 
The Huge fashion store Primark sacked three of its suppliers after investigation for the BBC's Panorama and The Observer uncovered children labouring in Indian refugee camps to produce some its cheapest garments. In the article (referenced below) they reveal the brutal reality of a supply chain that sees children as young as 11 sewing R-shirts which cost shoppers just a few pounds to buy in high streets across Britian.

Example of Corporate Social Responsibility in Apple 

An organisation that is from the FTSE4GOOD list that is an excellent example demonstration of the CSR in practice is Apple. There are three examples of corporate social responsibility in this globally branded company:
1) Apple have a re-use and recycling programme where they are committed to the environment as they are finding the best ways to re-use and recycle their electronic equipment at the end of its use. The products include Iphone, IPad and the Macintosh computers which they find ways to recycle and re-use, whether its replacing parts etc. Apple even offer people money for their old equipment as they can use parts from old products for new products which would decrease the cost of stock needed and beneficially increase profits. All Apple asks is for is users to tell them about their old equipment and Apple will let them know if it qualifies for re-use, if not customers can just recycle of re-sell if possible.

2) Another example of CRS in this company is that Apple are committed to their supply chain and that all their suppliers provide safe working conditions, as well as treating staff with respect and using a environmentally responsible manufacturing process. Apple (2012) state there is 'prevention of hiring underage workers and prohitbiting discriminatory policies at our suppliers'. They also ensure the workers are safe at work and have a good working environment by providing safety eqiupment and protective gear for workers to wear so they do not put themselves at risk. The staff are also given safety training so they know how to stay safe at all times whilst they are working and producing goods.

3) Lastly Apple are working on and putting into practices ways of minimizing their carbon footprint in a number of ways. Firstly, by producing smaller package. Efficient packaging designs not only reduces materials and waste but also helps reduce the emissions produced during transportation. Apple has experts who develop product packaging so that it is slim, light and protective. They are also reducung their transportation distribution miles to be more environmentally friendly, so they cut down on the pollution.


In Conclusion examples of corporate social responsibility can be found in abundance. That being said, examples of a lack of social responsibilty can also be found. Every individual can become a force for good by suppporting those corporations and demonstrate their intent to act responsibly at all levels. Consumer pressure can be a strong force contributing to improved social responsibilty by all corportations who deal with the consuming public. Being a large interantional business knowing that corporate responsibility is increasingly a 'driving factor in brand prefence and purchase behaviour' (Grinton, 2010) that they are dedicated to making such a significant change.






Bibliography:

Apple (2012) Supllier Responsibility at Apple {Online}Available from www.apple.com/supplierresponsibility {Accessed on 17/04/2012}

Anon (2011) Corporate Social Responsibility {Online} Available from Business Link: http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1075408468 {Accessed On 13/04/2012}

Ftse4good (2012) FTSE Research and Publications {Online} Available from: www.ftse.com  {Accessed on 17/04/2012}

Kotler, P. Lee, N. (2005) Corporate Social Responsibility: Doing the most good for your company and your cause. 1st Edition: Canada.


McDougall, D. (2008) The hidden face of Primark Fashion. {Online Newspaper} Available from The Observer: The Guardian: http://www.guardian.co.uk/world/2008/jun/22/india.humanrights {Accessed on 17/04/2012}

Mullins, L.J. (2007) Management and Organisation behaviour. 9th Edition. Harlow: Prentice Hall FT


Schmidt, B. (2011) Corporate Social Responsibility {Online} Available from Helium: http://www.helium.com/knowledge/223938-good-examples-of-corporate-social-responsibility {Accessed on 17/04/2012}

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