Corporate social responsibility and sustainable marketing

The beginning of twenty-first has brought environmental challenges like resources conservation, climate changes and global warming, which have directly impacted the role of business in society. In the last few years there has been an increasing and greater concern about the social and environmental effects of companies’ practices: according to the Triple Bottom Line (TBL), … Read more

Management for Environmental Sustainability

Abstract Management for environmental sustainability is the need of the hour due to increasing population and tendency of humans to ignore environmental issues. Organizations comprise all sorts of groups exploiting Mother Earth’s natural resources for fulfilling their own selfish needs. These organizations are the major contributors of pollution to this world. Earth is getting polluted … Read more

CSR initiatives of GILLETTE (Bhiwadi)

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

McDonald’s vs Kentucky Fried Chicken – corporate social responsibility

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

Importance of business ethics & corporate social responsibility (with examples)

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

SBS Transit SWOT, CSR, culture & organisational structure

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

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.