Lush Ltd is a private limited company founded in 1995 by a beauty therapist and a trichologist. In terms of the market, lush is associated with retail industry in a cosmetic sector as a dependable and organic cosmetic brand, defined by its customers as verdant, green and fresh. • What are the key industry issues … Read more
ABSTRACT In this age, sustainability and balance is demanded in every aspect from various organizations. Many corporations came to realization that it is their social responsibility to maintain and sustain the balance between the environment and the society and the balance between the stakeholders and the consumers. The study is about one such organization which … Read more
Engagement of CSR and its involvement with employees’ management / theory of reputational risks, quality of management and employee quality.
McDonald and KFC are two biggest competitors in South African’s Fast food franchise market both largely found in numbers throughout SA, McDonald’s and KFC both originated in the US but KFC is number one for the amount of fast food franchise’s located in South Africa and McDonald’s is ranked 9th in South Africa for their … Read more
The Group’s environmentally sustainable practices offer an outstanding example of responsible corporate behaviour for the hospitality industry.
In recent years the concept of ethical behaviour and Corporate social responsibility has become very important among both developed and underdeveloped countries. These two can be very beneficial for the companies to get success, earn wealth, reputation, goodwill and increase brand awareness. Companies have a responsibility towards the society along with making profit and wealth … Read more
Introduction SBS Transit Ltd is a public transport operator that provides transportation services for commuters to get from one destination to another in Singapore. It provides an extensive range of transportation services which includes public buses, two Mass Rapid Transit (MRT) lines namely Downtown Line and North East Line, and two Light Rail Transit (LRT) … Read more
Businesses show responsibility through corporate social responsibility (CSR) or corporate responsibility (CR) (Brookes, Altinay and Ringham, 2014; Carroll, 1999). As these terms can be considered the same impression as a responsible business, in this report, responsible business will be explained by using CSR. In recent years, consumers have been developing their understanding of the environmental … Read more
Shell Corporate Governance And Corporate Social Responsibilities Challenges And Issues British Petroleum (BP) and Royal Dutch Shell (Shell) are two major players in the oil and Gas industry. BP and Shell are competitors and market and sell their products direct to consumers via service stations setup worldwide. However when it comes to the United Kingdom … Read more
Nike is classified among the most valuable brands in the world, and it is a leading manufacturer, and seller of sportswear and apparels. Most of the organisation’s factories are located in Asian nations like Vietnam, China, Taiwan, and other nations. The company signs contracts with contractors who manage the production of sports goods in those … Read more
About Corporate Social Responsibility
All businesses should have a core sustainability strategy. Sustainability is becoming a more important focus for all companies, across all markets. 62% of executives believe having a core sustainability strategy is a necessity to be competitive in today’s markets, and another 22% think it will be necessary in the future (cited in Haanaes 2016).
It can be argued that having a core sustainability strategy is a necessity in current industries as sustainability is fundamentally a business approach to forging long-term value by taking into account how a given company operates in the economic, social and ecological environment and is developed on the assumption that creating such strategies foster company longevity. The expectations on corporate social responsibility are increasing, and demand for transparency is becoming more significant meaning companies are recognizing the importance to act on sustainability.
There is no one correct solution in regards to sustainability as the best solution depends on the objectives and circumstances surrounding each company. It is the duty of the management to ensure that the strategy implemented and the sustainability efforts are aligned. Often we see divergence between the two, which results in the sustainability efforts appearing fragile and lacking prioritization.
Many of today’s leading companies at the forefront of promoting sustainability, such as Nike, Coca-Cola, IKEA and Nestlé have stepped up predominantly as a consequence of a crisis. For example, Nike faced a lot of public anger for abusive working conditions in places like Indonesia with poor worker protection laws throughout the 90s, however they managed to turn their image around and in 2005 they became a pioneer in establishing transparency. They did so by themselves publishing a thorough report entailing complete details about their factories and the working conditions which are established and kept. Nikes strong sustainability strategies have been underlined by Epstein, Buhovac and Yuthas (2010) who support the idea that Nike’s competitive edge in the footwear market has been sustained through the fact that they are widely recognized for their positive corporate social responsibility as well as their products. As a result rational consumers would be more inclined to buy from Nike rather than their competitors. Especially because of the type of customers that Nike encounters as customers who use sport-related products might be more informed of issues regarding environmental degradation, such as air quality and waste disposal. These customers are often more attuned to environmental and social issues, and therefore might consider these factors in their purchasing decisions. Therefore by having a core sustainability strategy Nike is able to retain its competitive edge in their industry and consequently appear as the more appealing choice in the consumer eye. By doing so as the market leaders they are setting a precedent for others in the industry to follow, and are promoting the use of sustainability strategies. Thus almost making it a necessity to have one if a company wants to retain their customers and stop them from switching to a more sustainability conscious company.
Today, more than ever, integrating sustainability into business strategies is very important to protect the future of a company. Investors are increasingly taking note of if a company has a core sustainability strategy as evidenced by EY’s annual investor survey (2010). This survey displays that 80% of all respondents agreed or strongly agreed that environmental and social factors offer both risks and opportunities, but that companies have not considered these in their business. These results support the point that there has been a recent shift in investor sentiment to focus also on whether organizations have integrated sustainability into their business strategies as it is shown to enhance the performance of a company. Therefore in order to keep up with the wants of shareholders and investors it is becoming increasingly imperative that businesses have integrated sustainability into their core business strategies.