Using a current or a past company construct an argument for

Using a current or a past company, construct an argument for the company to pursue CSR as a strategic necessity. How would you describe the culture and leadership related to CSR? How does your company define CSR? Are they on the right path or do they need more work? Explain.

Solution

Companie should construct their own CSR strategies because of the following reasons:

1) Innovation : In context of CSR, innovation is a huge benfit to company and society. Ex. is unilever\'s recent launch of hair conditioner that uses less water in cleaning.

2) Cost savings : Although initial amount spent for R&D can be high, long time cost saving is generated in terms of reduced packaging cost or consuming less energy. Ex. LED products are savings 15-20% energy consumption as compared to LCD or any other normal electrical products.

3) Brand differentiation : From the inception of the concept CSR, brand differentiation is seen as primary reason of adoptinng CSR strategies. With increase competition and spreading awareness of importance of CSR in branding, many companies are now offering environment friendly packaging in various food products. Soft drink manufacturers, in past were offering drinks in glass bottles which is now replaced with sustainable plastic bottles as an act of CSR.

4) Long term thinking of profit : Although when company designs CSR activities for firm, initial cost of planning and implementation is considerably high. Majority of firms are adopting CSR considering long run future of firms. Firms agree on the fact that CSR provides them benefit in long run and brings positive business for firms.

5) Customer and employees engagement : Since CSR is addressing social and organisation issues consist of internal and external stack holders like shareholders, employees, society and government agencies,it is very important that Firms should design CSR activities to engage customers and employees. For Ex. In India P&G, has started initiation of educating children for primary education. In this initiation, when customer buys any P&G product from the shop, 10 % amount of the product price spent on child education by providing them study stationeries and books.

To generate succeful CSR in an organisation, firms should follow coporate governance rules and regulation, should have structured Board of directors panel and well defined business rules. Besides these, ethical behavior of firm in business can create an appropriate work culture for CSR.