SUMMARY ON THE CSR IMPLEMENTATION
Corporate Social Responsibility is appraised tremendously as a result of its contribution it has conveyed into the development of series of businesses that have occurred in the early 1990's.
In recent times, Corporate Social Responsibility is recognized as a global observable fact which has brought about an increase in academic debate on Corporate Social Responsibility in the last decade.
Series of studies on ways to determine how consumers are aware of Corporate Social Responsibility and investigations on the ability of Corporate Social Responsibility to have positive consumer purchase-behavior effects during the time awareness is established were carried out extensively by Welford (2007) and Zadek (2004). Corporate Social Responsibility must possess the ability to influence the positive purchase-behavior of a consumer.
The author cited Knox and Maklan, (2004), debated on the situation that contributes to the setback in the development of CSR which is recognized as the inability to implement a systematic framework linking investment in these responsibilities to social or business outcomes.
Nowadays, no organization can exist without any form of CSR but there exist some national differences in the practice and performance of CSR stated by (Gjolberg, 2009). A concrete solution is suggested in the integration of CSR concept in their sustainable development policy. The idea of sustainable development can be found at the enterprise level in the concrete form of CSR which comprise of main objectives such as:
• Social Ethics,
• Environmental protection and
• Economical efficiency.
Among various definitions of CSR by different researchers, the most quoted definition was by Caroll (1999). He defines CSR as the economic, legal, ethical and philanthropic responsibilities of every organization. Pedersen, 2010 and Zadek, 2004 were quoted by the author speculating the integration of CSR in the strategic and operational management will bring about a helpful impact on the community and the environment. According to Coupland, (2005), Creyer and Ross, (1997) suggested how CSR can also be of high esteem to the society, not only chasing for short-term profit but also caring for more opportunities to come such as:
• New preoccupations and expectations from citizens, consumers, public bodies and investors in the context of the changes and of the globalization of the business activities (Frankental, (2001), Esrock, and Leichty, (1998), Gjolberg, (2009).
• Identifying of new social criteria, which influence the investment decisions of some individual and institutions (Jamali, (2008) and Maignan, (2001)).
• Taking into consideration, awareness raising and the increase of the citizen's preoccupations towards the environment damages caused by the businesses (Guimarães-Costa and Pina e Cunha (2008).
• Transparency in the unfolding of the business activities using new and modern information and communications technologies (Bucur, M., Petra, C., (2011), Guimarães-Costa and Pina e Cunha (2008), Haddock-Fraser, Fraser (2008), Sen, and Bhattacharya, (2001).
Basically, there are principles that need to be consciously reflected in the actions of the company designated by CSR comprises of:
• Complying with the laws,
• The assumption of an ethical behavior
• Paying considerable attention to the environment
• Taking into consideration of the needs and interests of all stakeholders
• Respect for the human rights,
• Equal treatment for all employees, clients and suppliers, the corporate citizenship,
• Preservation of the natural environment
These principles stated above are regarded as morality and ethics that can elongate the life span of every organization if it is consciously reflected (Chatterji, Levine, (2006), Pomering, & Dolnicar, (2009).
Aims of the study:
The author aimed at the following:
• Identifying steps to follow for the implementation and evaluation of a company's CSR activities
• Addressing the need for implementing the concept of CSR among the top companies
The author contributed by identifying the following steps for implementing CSR which are:
2. Stakeholder identification
3. Identification of needs and expectations of the stakeholders
4. The CSR frame analysis
5. Improvement of the firms' activities
6. Revising and reporting of the CSR implementation performance
1. Awareness: actions to be implemented need to be known or recognized which will dominate the organization and the top-management. These can be carried out by the following:
1.1 Stating goal for CSR implementation
Organizations need to make the following decisions on what their objectives are, how far they intend to go and the benefits to attain for the organizations and for their stakeholders. This step needs to be realized by the management team at the reunions for discussing strategy and the policy of the organization.
The simpler the application of the method, the higher the effect achieved.
1.2 The case of a profitable business
The business case compares the benefits with the costs. The cost of actions to be carried out is compared with the anticipated benefits from the results the management team being able to decide if an action should start or not. The benefits is known as financial perspectives, clients and internal businesses (tangible benefits and intangible benefits) while costs is regarded as amounts of money or consumed resources.
1.3 Identification of an action
Completed project needs to be formed by six detailed levels which are:
o Time level: the management team needs to state the list of actions with a given order and schedule a period for the completion of the project.
o Action level: Different questions related to the task needs to be stated which are: what is the goal? How can achievement be measured? How objective attainment can be tested?
o Resource level: what are the specifications required for each action? How many persons, what kind of equipment and technology is necessary and when?
o Risk level: risks are incidental on each level of activity while major risks are averted with decisions made by the management team.
o Costs level: decision is made on each activity invested on.
o Communication level
2. Stakeholder Identification: it is an imperative beginning for every organization that wants to be socially responsible to identify their stakeholders. To comprehend the image of the stakeholders, the following questions needs to be answered:
i. Who are our stakeholders? With proper managers a list of all stakeholders will be realized.
ii. What is the nature of each stakeholder?
Basic stakeholders – essential for the organization's survival
Strategic stakeholders – essential for the organization, for the opportunities and threats;
3. The identification of needs and expectations of the stakeholders – Understanding of needs and risks is essential for the implementation of the CSR. The author used the following to assess the performance of the stakeholders which are as follows;
• Preparing a graph application to identify each stakeholder's needs
• Organizing an interview with each of them
• Each stakeholder should rank the expectations from 1 to 5, according to their importance.
• Each stakeholder should rank their performance level from -3 to +3.
From the table given, the author measured stakeholder expectations alongside with the stakeholder's performances by using factors like safe and healthy environment, employees' possibilities to get involved into community life and non-discriminative politic.
The author drew a matrix known as importance diagram of the stakeholder's expectations to analyze the expectation and performance level stating the importance of expectation ranging from E1 to E6. On the matrix, stakeholder's expectations below the medium performance were given as E4, E3 and E6 which implies that the stakeholder's expectations from the matrix have been restructured as the main factors to work effectively on while the expectations above the medium performance known as E1, E2 and E5 were regarded as less functional.
4. The CSR frame analysis – the CSR frame analysis aims at understanding the existing CSR implementation level in the organization and it can be realized by applying questionnaires and complying with the following steps:
Selecting a form model
Decision if the filling in will be realized by a group or by an individual
Compare and analyze the results in order to identify problem questions
Establish reasons for each low ranking
Facilitate discussions in order to improve different aspects of the action plan.
The questionnaire is known as a simple assessment method which enables the organization to identify strengths and weaknesses referring to the implementation of the CSR. The questionnaires need to have a well balanced question, so that they obtained a broad view on strengths and weaknesses of the company. The questionnaire is centered on offering an image of the current position of the organization, substituting an improvement measures' recipe, facilitating a discussion with the management team for prioritizing fields to be improved and development of action plans.
5. Improvement of the firms' activities – the author stated where the organization needs to identify improvement on based on the approximation from the former step which are:
5.1 Developing and implementing an ethical code
The ethical code is a method used in developing series of ethical principles reflecting the values of the organization of the stakeholders and of the society. Every organization that makes use of the ethical code is at the advantage of adding a good reputation to their brand image, improvement on management of risk, avoiding fines and penalties and creating a proper culture for the CSR implementation.
5.2 The “Volunteer Day” Program – the author stated principles for creating Volunteer Employees program which are:
Management support team is created in order to prepare a guide mint to reflect the needs and expectations of local community.
The guide needs to explain types of volunteer ship to be supported
Communication of the program in order to encourage volunteer work.
5.3 Investments for the community
Investing on the community refers to a range of actions taken in order to realize an impact on the community, investing or donating money, time, products, science and other resources.
5.4 Open visits
This occurs by entertaining visitors into the organization with the aim of identifying their needs and some other related matters. Activities like rendering a welcome speech, distribution of informative brochures about the company, guided visit to each department and orientation on the operations of the organization are done on such a visit.
6. Revising and reporting of the CSR implementation performance – the report on CSR is about how the organization, stakeholders functions and also helps to establish the prestige of the organization.
6.1 Public reporting
The CSR report explains the strategy of an organization, the way it implements the values and methods of solving problems in the field of activity. A CSR also promotes the concept in the business environment and at the same time a starting point in the dialogue with the partners.
In conclusion, the authors' perception on CSR has illuminated more on how CSR can be effectively implemented and managed by every organization.
The author concluded by stating how sustainable CSR can be to every organization in time to come if it is stimulated and improved in an imperative way with the aim of reducing risk and hazardous penalty to which the planet and the human race are exposed. The concrete and efficient way to satisfy this aim signifies conscious, realistic, brave and continuous approach of the combination by every organization of their existential interests such as production and profit with aspects Corporate Social Responsibility.
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