Case study PDF

Title Case study
Course Principles and Practice of Management
Institution Sunway University
Pages 3
File Size 56.5 KB
File Type PDF
Total Downloads 17
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Case study Based on the case study that we have reviewed; Boost Juice is undeniably an organization that operates effectively while not failing to be ethical. Corporate Social Responsibility (CSR) is a concept of management where the social and environmental concerns are incorporated into a company’s operations and interactions with their stakeholders in a business. (Arvidsson S, 2014) The four levels of social responsibility include Philanthropic, Ethical, Legal and Economic Responsibility which is based on the Pyramid of Global Corporate Social Responsibility (Bateman, T.S and Snell, S.A, 2014) which is what companies and organizations endeavour to achieve and become on their road to prosperity (Exhibit I). By practicing CSR, a company can obtain many benefits that comes along with it. For example, a better and positive brand image in the public’s eyes. However, there are two opposing views of social responsibility, one which is narrow view and the other known as broad view. Based on the case study and external sources, it seems to suggest that Boost Juice follows a broad view as their management responsibilities goes beyond making profits. Firstly, the first level of social responsibility known as Economic Responsibility is present within Boost Juice. A company can achieve this level of responsibility when they strive to maximise profits to attend to the interests of investor as well as to devote to their country’s economic growth. In 2009, Boost Juice has opened their first franchise in Malaysia due to lower factor costs. Owing to the tropical climate in Malaysia, fruits needed for juices are available all year round and inexpensive which will lower the company’s cost of production leading to an increase in profits. Plus, there is an abundance of small-scale farmers in Malaysia, the benefits for Boost finding small scale suppliers can only get better. (Economist, 2011) Likewise, to raise much-required funds to finance their international expansion plans, Boost Juice sold a majority share in 2010 to The Riverside Company for A$65million, which resulted into a financial success as Boost’s turnover was approximately A$135million by 2011. They have expanded to 180 retail outlets across Australia by 2005, and its brand awareness risen to 94%. (Boost Juice, 2011) Boost has a total of 51 stores in Malaysia and is currently the largest juice bar in the country. (Boost Juice, n.d) Next, Legal Responsibility. A business must operate within the boundaries and laws set by the country’s government to achieve this level of responsibility. For example, following tax laws. Boost Juice is committed to full compliance with the rules and regulations of the countries where they operate. According to Boost’s website, they are a registered franchise with the Ministry of Domestic trade in Malaysia since 2011, meaning they operate legally. (Boost, n.d) Furthermore, according to Boost Juice’s privacy policy which is open for the public to look up, all the information of employees is private and confidential unless needed. Customers that apply as Boost VIBE members are also fully ensured that their personal data is protected. This also implies that Boost Juice practices the Right View of Ethics theory, which includes respecting and protecting individual freedom and privileges. There have been many positive reviews from employees about Boost’s care for workers. All

Boost employees in Malaysia also receive wages -RM5.50/hour, more than the minimum wage requirement of the country – RM5.05/hour. (The Star, 2018) Other than that, Boost will always ensure that their team are paid on time and in line with the correct award. (Boost, n.d.) This suggests that Boost Juice fits the criteria of holding responsibilities to their employee, one of the frameworks of CSR which includes responsibility to employees, environment and society etc (W, Nickels, J, McHugh, S, McHugh, 2012). It also relates to one of the ethics, Justice View, which means to treat every individual without favouritism or biasness. Thirdly is Ethical Responsibility. This means the behaviour of the firm expected by the society but not required in law, which involves protecting the environment in a small or large scale. Based on the case study that we reviewed, it can be known that Boost Juice has an aim which is “To become juice, what Starbucks is to coffee.” (Facebook, 2011). Starbucks is known for their activities that falls under ethical responsibility such as ethical sourcing and selling reusable mugs. Boost Juice Malaysia is moving towards that aim as they use paper cups instead of plastic cups. Moreover, more than 98% of the paper component is biodegradable. (Lee, 2015). The paper cups are also printed using products which are unharmful to the environment since 2012. According to the official website of Boost Juice (2018), plastic straws were replaced with paper straws across every store in Australia. Just like Starbucks, metal straws and mugs in their Australian outlets are sold to further encourage their consumers to be eco-friendly. For them to further expand their ethical responsibility in Malaysia, a recommendation can be given for Boost Juice to sell reusable mugs and straws in their Malaysian outlets. Boost also provides healthy and tasty juices as alternatives for other less healthy drinks which further promotes healthy eating to the society. Lastly is Philanthropy Responsibility, which is frequently related to donations and investing in the community. According to Lee (2015), Boost Juice Australia has achieved this responsibility through the BOOST foundation, where young people are given the opportunity to learn new skills and qualities in life such as discipline. Other that than, donations have been made by Boost to schools in Fiji where new equipment were provided. Boost also gave underprivileged children an opportunity to have their own bicycles through a Build-a-Bike campaign in 2010. But this only implies that Boost Australia has achieved the highest level of CSR, not Boost Malaysia. For them to achieve this highest level of responsibility for their businesses in other parts of the world, Boost can start off by doing these small projects in other countries such as Malaysia and Singapore then slowly expand into larger projects such as expanding BOOST Foundation to these countries. In conclusion, the evidence provided is only enough to prove that Boost Juice Malaysia has reached the third level of CSR, Ethical Responsibility. The activities that they have done has shown the public their care for the community and further expansions of these community projects can bring Boost Juice to another level.

Though there might be some challenges regarding social responsibilities such as how people might not see their care as sincere and damage the reputation of the company. However, if Boost continues to show the world their care and support to the community, their success would be just ahead of them....


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