Business Assignment 1 - asda PDF

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COMSATS UNIVERSITY ISLAMABAD, ABBOTTABAD CAMPUS

ASSIGNMENT NO: 01 DEPARTMENT:

BACHELOR OF BUSINESS ADMINISTRATION

SUBJECT:

INTRODUCTION TO BUSINESS

SECTION:

1A

SUBMITTED BY:

AFSAAR KHAN

REG NO. SP21-BBA-001

AREEBA

REG NO. SP21-BBA-003

DUR-E-FATIMA

REG NO. SP21-BBA-004

HASHIM

SUBMITTED TO:

REG NO. SP 21-BBA-007

PROF. AWAIS RASHID

DATE OF SUBMISSION: 15/03/2021

CORPORATE SOCIAL RESPONSIBILITY

Definition “Corporate Social Responsibility (CSR) is a type of business self-regulation/strategy which aims at becoming socially acceptable by introducing such policies which are meant for the whole betterment of the society and the surrounding environment”. OR “CSR also means that an ordinary business company is operating in ways that enhance the society and the environment instead of contributing negatively to them”.

Businesses which aim to incorporate CSR policies into their business portfolio aims at gaining the trust and confidence of the general and build a social, economic, environment and customer friendly image in the society.

Understanding Corporate Social Behavior CSR is a broad concept that can take many forms depending on the country and company. It is how companies can make a positive impact on society and environment. In the past, Corporations were money hungry. Today, it’s very important to real millennials and to do so companies should engage social programs. For Example, many plastic bags companies are now using leather bags or cotton fabric bags to reduce environmental pollution and also cost

reduction. This helps them to grow differently from their competitors and this is Corporate Social Behavior.

Common Initiatives CSR program vary in scope, but few common initiatives includes:   

Directly giving to non-profit groups, such as a local food bank often in conjunction with volunteer efforts by employee and donations Job training programs for the disabled or other disenfranchised groups A focus on reducing the company’s environmental footprint through efficient supply chains, recycling, reducing energy usage and other efforts.

Special Considerations In 2010, the International Organization Standardization (ISO) released a set of voluntary standards meant to help companies implement corporate social responsibility. Unlike other ISO standards, ISO 26000 provides guidance rather than requirements because the nature of CSR is more qualitative than quantitative, and its standards cannot be certified. Instead, ISO 26000 clarifies what social responsibility is and helps organizations translate CSR principles into practical actions. The standard is aimed at all types of organizations, regardless of their activity, size, or location, And, because many key stakeholders from around the world contributed to developing ISO 26000, this standard represents and international consensus.

Examples of Corporate Social Responsibility in Action Corporate social responsibility comes in many forms. Even the smallest company impacts social change by making a simple donation to a local food bank. Some of the most common examples of CSR include:       

Reducing carbon footprints Improving labor policies Participating in fair trade Charitable giving Volunteering in the community Corporate policies that benefit the environment Socially and environmentally conscious investments

Different Opinions about CSR around the world We have come across a saying probably many times that a coin has two opposite faces just like that this phenomenon known as CSR has people who are in its favor as well as there is also another half in this world which are opposite to it. Upon conducting some deep research on this topic and learning about facts and figures it would not be wrong to claim that overall the public opinion about CSR is somewhat positive and rather in its support than against it. I have stated

this here because it is only after introducing these policies, businesses all around the world have become more accountable for actions either against or in favor of the overall society.

Population in favor of CSR and their opinions Coming to the first half of the argument which comprises of those general opinions which show support in CSR it would not be wrong to say these are mostly people who support this cause and well they have their own reasons which I would like to mention here:

Trust Factor Well, generally for any business to succeed trust factor should be held into account at all times. Customers would only be willing to purchase from a company, business or firm if they are fully assured that the business company they are dealing with is fair and transparent in their dealings. Here CSR comes into play because out of many principles outlined in the CSR policies, one clearly emphasizes on always including fairness in business dealings and CSR keep up with it pretty well.

Eco-Friendly Production Techniques There is a heated debate about climate change going around the world in different parts of this world. At the peak of this argument it is very important for companies to adapt climate friendly production methods, that is not only why a huge portion of population support CSR claims about bringing around a positive impact on climate but also at the same time cut a good chunk from the cost of production as well.

Affordable Costs of Production Incorporating CSR business tactics into one’s business company not only affects the climate positively but also reduce the cost of producing goods by an efficient reasonable margin. That is evident from the fact that most companies have introduced the concept of paper based shopping bags and some restaurants and coffee shops have already started using paper based cups and mugs because that is favorable to the longevity of not only the marine life but also very beneficial economically as those products once used can be sent back to recycling companies again making these products fit for public use at lower costs.

Companies that have adapted CSR policies There are thousands of companies all around the world which have encultured CSR policies in their operations working in collaboration with food banks and charitable organizations which are giving away major portion of their earnings to the society and tackling problems such as hunger,

poverty, education and unemployment. Here are examples of few companies who have adopted CSR culture successfully:

Ford Motor Company Ford Motor Company has planned to reduce emission of greenhouse gases using their Eco Boost Engine technology to increase fuel efficiency. It also plans to introduce 40 electrified vehicles (both electric and hybrid) in an investment of 11 Billion US$. In an addition Ford dealerships wind sails and polar PV systems to power their locations greatly reducing the usage of electricity.

Pfizer Pfizer uses the term corporate citizenship to coin their CSR initiatives and believes it is a core part of their company and ‘simply how they do business’. Across the globe, the company drives initiatives that raise awareness for non-infectious diseases as well as providing healthcare for women and children who otherwise would not have the care they need. One example of this is the reduction in the price of their “Prevnar 13 vaccines” for those in need and in situations such as refugees and emergency settings.

Johnson & Johnson An excellent example of CSR is global giant Johnson & Johnson. They have focused on reducing their impact on the planet for three decades. Their initiatives range from leveraging the power of the wind to provide safe water to communities around the world. The company continues to seek out renewable energy options with the goal to procure 35% of their energy needs from renewable sources.

Companies against CSR and its policies There are some companies in the world that are not supporting CSR because their aim is to gain profit rather than Social betterment. These companies work totally opposite to the CSR concept. Here are some examples of few Socially Irresponsible Companies:

Chevron Chevron has launched a huge multimedia blitz around its supposed commitment to smart energy and renewable energy resources- but also destroying pristine forests in Ecuador and Bangladesh giving birth to different health problems and destroying a major portion of rainforest due to their toxic minerals generated at their refineries and released into oceans, rivers and lands. Texaco, a project which was taken over by Chevron caused a toxic “Rainforest Chernobyl” in Ecuador from 1964 to 1992. They also dumped 18 billion gallons of toxic production water into the rivers where locals bathe.

Nestle More than 40% of the world’s total chocolate comes from Cote d’Ivoire (the Ivory Coast) in Africa, where tens of thousands of children are estimated to be working in dangerous conditions in cocoa farms. Nestle promised that by July 2005 they would find a way to certify chocolate as not having been produced by any underage, indentured, trafficked or coerced labor, but since then, they have achieved very little.

Conclusion Generally, there are two types of companies around the world, ones which follow the CSR policies and the other ones are those who do not comply with CSR policies. It is very important for business firms and companies to follow CSR policies. Companies who have adapted CSR policies into their operational management not only have a wide range of customers but it helps them gain trust of the wider community. Those companies which always prioritize moral and ethical values over just generating money have a very positive image in the society. More and more people invest in their schemes and like to associate themselves with their business strategies. For a business firm to run successfully and return profits, I feel like they should always consider the outcome of their actions on the whole society in general. For example, giving away some portion of their revenues to charitable organizations, lifting unemployed persons in the society and giving them proper jobs and equal opportunities, providing aids and employee rewards where necessary, running their financial matters in a transparent fair manner. CSR has changed the way businesses operate these days by introducing principles which have made businesses accountable for their actions and have created a friendly relation between these business firms and customers.

REFERENCES https://www.businessnewsdaily.com/4679-corporate-social-responsibility.html

https://digitalmarketinginstitute.com/blog/corporate-16-brands-doing-corporate-socialresponsibility-successfully

https://eco-chick.com/profits-before-people/

https://www.factsandopinions.com/tag/corporate-social-responsibility/...