Achieving the Sustainable Development Goals - Assignment Example

ENVIRONMENTAL MANAGEMENT Name Institution Environmental Management Can corporate social responsibility play a constructive role in achieving the sustainable development goals? Present a compelling case for your response. The concept of corporate social responsibility (CSR) has grown in popularity across the world and is most used in the business community1. It has taken the character of strategic plans that benefit the community, environment, and stakeholders. Corporate social responsibility enables an organization to respond swiftly to the needs of the community in form of economic, social and environmental challenges. Companies that employ CSR often enhance their image and reputation in the eye of the public, which may result in high profitability. Nevertheless, despite the benefits that come with CSR, the establishment of this initiative requires coordinated action from the stakeholders in order to be able to attain sustainable development results2. Debate of the issue of corporate social responsibility has gained status over the last decades. CSR is not just beneficial for organization but is critical and valuable for the people and the planet. A lot of discussion has been centered on this concept and evidences have established that corporate social responsibility is in harmony with sustainable development. Firms that have adopted CSR add value to the society by aggregating human capital of stakeholders and societal capital of the community. This essay will discuss the role of corporate social responsibility in achieving the sustainable development goals3. Liberalization and globalization has divided the world and has resulted in an imbalance between development and sustainability. Research suggests that the world has become a dangerous place to live in due to unsustainable human practices4. To solve this problem, the concept of sustainable development has developed. Sustainable development may be interpreted differently but is a process of balancing different and conflicting needs against an awareness of the economic, social and environmental challenges facing the community. It “involves an ethical dimension of fairness of trade-off between current economic pressure and future needs on environment5.” On the other hand, corporate social responsibility can be defined as the commitment of companies to contribute to societal development by taking care of the needs of the environment, community, and stakeholders. The responsibilities of any company should involve the philanthropic, ethical, legal and social and economic expectations of the society. According to research studies done by Hagendorff and Clacher, corporate social responsibility is the effort of a company to behave ethically and responsibly and assist in economic development at the same time enhancing the quality of life of employees and the community at large6. The concept of CSR is understood the same everywhere, but organizations’ efforts of initiating CSR is driven solemnly by the needs of the society. Corporate social responsibility necessitates organizations to consider the social and financial aspects of their operations. This means that they should consider social, environmental and financial outcomes of their decision which has created the idea of “triple bottom line.” Triple bottom line is composed of the people, planet and profit factors. According to the concept of triple bottom line, businesses are expected to act in the interest of the environment, society and the economy7. People, planet and profit essentially describe the sustainable development goals. The concept of triple bottom line was developed by John Elkington and was first adopted by Shell as their sustainability goal. From then, the concept has grown in popularity and is being utilized in different countries across the world. A company that has adopted the triple bottom line often seek to benefit all the elements that make up a society and not to exploit or cause damage to any group8. For instance, a triple bottom line (TBL) enterprise would not utilize child labour and would conduct extensive monitoring of its operations to ensure there is not child labour, people receive fair wages and employees operate in safe and clean working environment. In addition, TBL companies would not tolerate poor treatment of employees, will offer manageable working hours and would never exploit the labour force in any way. These companies seek to give back to the community by contributing in strengthening aspects such as healthcare, education and sports9. The idea behind triple bottom line is to create a balance between the needs of people, the planet and the shareholders so as to be able to enhance long-term success. Therefore, the concept of corporate social responsibility expects companies to go beyond the legal expectations in order to treat employees fairly, operate in an ethical manner when dealing with the stakeholders, respect human rights, sustain the environment and be responsible neighbour to the society. Through the triple bottom line, companies have been able to drive corporate social responsibility to another level10. Today, CSR is not seen in the lens of charitable initiatives but in a wider lens involving the concept of sustainable development. The sustainable development goals were introduced by the United Nations as a view for the future of development until 2030. Different countries came together to determine ways to develop successful which led to the introduction of the sustainable development goals that are used as a framework for eradicating poverty, developing the economy and enhancing environmental sustainability. The aim of the sustainable development goals is to bring together multiple actors from private and public sector and civic society to drive global development through the seventeen established goals. Sustainable development goals involve the “development that meets the needs of the present without compromising the ability of future generations to meet their needs11.” Therefore, corporate social responsibility is one of the primary means through which sustainable development goals may be realized. There are three essential elements of sustainable development goals; the economy, the environment and the society. According to the sustainable development goals, companies and the public should conserve natural resources by changing the way they use or develop technologies12. To achieve this goal many companies have established policies that guide them towards protecting the environment. For instance, companies such as Vodafone have implemented schemes to reduce carbon footprint and enhance the use of eco-friendly energy sources. Vodafone has adopted environment-friendly technology to develop the e-rick. E-ricks are hybrid vehicles that act as a pollution free mode of transportation. With such technology in place, the company has been able to prevent environmental pollution and establish a positive relationship between their corporate social responsibility initiative and sustainable development goals13. In addition, the company has introduced mobile recycling programme in its stores where customers can sell their damaged pones to the company which can be recycled and eventually reduce pollution. They also have eco-friendly SIM cards made of recyclable materials. Another important aspect of sustainable development goals is social equity. Countries should be allowed to meet their needs based on employment, food and sanitation in a sustainable way which can be achieved through sustainable population level14. This goal can be achieved using CSR initiatives that are based on promoting gender equality and healthy labour practices among others. For instance, Tata Motors have provided more than 200 scholarships for children pursuing their higher education. Through these scholarships, the company has been able to assist many students over the years get access to education. Out of the students supported by the company, 132 of them are from marginalized communities. They are also provided with books and other school equipment that would have been difficult for them to afford15. These students also undergo different workshops and outdoor sections outside their elements. Such initiative has boosted equality among students in the education sector and has enabled the disadvantaged children get access to education. In addition, sustainable development goals are meant to support economic growth. Developing countries must be given a chance to have a growth of equal quality to that of the developed countries. Some companies have ventured into developing countries with the aim of enhancing their economy. They have invested in such countries and this has created an improvement in the economy. Also, companies have taken part in supporting initiatives in developing countries with the aim of reducing poverty that would support economic development16. For instance, Tata Steel has established an economic empowerment initiative as part of its corporate social responsibility aimed at empowering developing economics through improvised agriculture in areas such as Jharkhand, Orissa and Chhattisgarh in India. The company has invested a lot of capital in this program which has benefited more than 400 villages in the areas. Through this initiative, the poor communities can have access to food and this would assist in minimizing poverty. Corporate social responsibility can be considered developments done outside and inside the company. Through corporate social responsibility initiatives, companies can participate in poverty alleviation17. Organizations cannot reduce poverty by themselves. Nevertheless, working with national governments and non-governmental organizations can stimulate economic growth for the poor people. Companies such as Coca-Cola Corporation have been working with local governments and have partnered with non-governmental organizations to alleviate natural disasters and speed up reconstruction activities in countries faced with hurricane and tsunami. In addition, CSR initiatives aimed at improving people’s skills is one way of creating sustainable development. Companies often increase human skills through education, training and development of its workforce and external entities. Many multinational corporations have partnered with governments to develop training schemes in developing countries to provide sorely needed skills18. Multinational corporations have also assisted small and medium-sized enterprises in improving their management, technological and financial skills which is critical in achieving sustainable development goals. In addition, companies that have adopted the corporate social responsibility initiatives often work with local community. Improving local conditions often work for the betterment of both the community and the company. It enhances business reputation and image and preserve harmony but at the same time assist in improving the lives of people. Philanthropy is an integral part of a triple bottom line business. Nevertheless, few philanthropic programs are sustainable and therefore do not assist in achieving sustainable development goals. Most philanthropic programs often start with a bang but do not continue19. For a philanthropic initiative to achieve sustainable development goals, it should be involved in human rights and should have the capacity to continue for a long time. The charitable programs should be harshened in positive development efforts. According to shareholder’s theory, an organization should base all its decision on its shareholders and should strive to satisfy them through profit making. And as such, corporate social responsibility initiatives go against the belief of the shareholders theory as companies need to use money for such programs. Some scholars argue that firms should prioritize profit making over corporate social responsibilities20. Nevertheless, lack of CSR result in poor reputation and ma eventually lead to losses or business failure. Although companies should focus on making profit, it should not forge its responsibilities towards the society. The triple bottom line considers the responsibilities of companies towards the shareholders which also contribute towards economic growth which is part of the sustainable development goals. Also, corporate social responsibility involves the maintenance of environmental and health standards, protection of employees from violation, working against corruption and protection of human rights. All these factors are essential in achieving sustainable development goals. Companies with CSR programs often establish anti-corruption culture when dealing with the outside world. Such initiatives have assisted in minimizing corruption scandals and strengthening the economy. Corporate Social Responsibility involves working towards achieving sustainable development; there is therefore a direct relationship between CSR activities and Sustainable development21. All the initiatives of CSR contribute towards the realization of the Sustainable development goals. Through CSR, companies cease to create challenges that the government have to fix. Governments have been faced with the challenge of fixing the economy as a result of bad decision made by companies. For instance, some firms cause pollution and poverty and violate the rights of the employees all in the name of shareholders value. To achieve the sustainable development goals, organisations should stop engaging in such activities by adapting corporate social responsibility22. Many businesses have linked their CSR to sustainable development goals. For instance, Unilever has ensured sustainable consumption and reduction of its environmental footprint. The company has also eliminated gender pay gap in order to achieve gender equality. Such initiatives are working towards achieving the sustainable development goals23. The sustainable development goals offer an opportunity for companies to take part in improving the condition of the environment in which they operate. In conclusion, the concept of corporate social responsibility has grown in popularity in all parts of the world. It involves economic, social, ethical and discretionary responsibilities. Many companies have established CSR initiatives to deal with issues affecting the society in areas like education, health and the environment. Companies such as Unilever and Tata Motors have been engaged in corporate social responsibility for decades now and have taken a huge art in minimizing societal challenges. CSR is linked to sustainable development goals. Organizations with CSR initiatives like reducing carbon footprint and using clean technology serve as a way of attaining sustainable development goals. The sustainable development goals are meant to address the greatest challenges facing humanity such as poverty, hunger, unfairness and inequality. Achieving these elements is not an easy task and requires the involvement of all business whether public or private. Organizations can assist in achieving these goals through adopting corporate social responsibility. They have the power, resources and knowledge to contribute to bettering the society. CSR may take the form of eradicating poverty, enhancing education, offering good working conditions for the workers, and preserving the environment. Improving local conditions often work for the betterment of both the community and the company. Therefore, it is evident that corporate social responsibility can be used in achieving sustainable development goals. Bibliography Antal. Ariane, Dierkes, Meinolf., Keith, MacMillan, and Martz, Lutz. “Corporate social reporting revisited.” Journal of General Management, 28 (2002): 22-42. Barnett. Michael L. “Stakeholder influence capacity and the variability of financial returns to corporate social responsibility.” Academy of Management Review, 32 (2007): 794-816. Carroll, Archie. and Shabana. Kareem. “The Business Case for Corporate Social Responsibility: A Review of Concepts, Research and Practice.:” International Journal of Management, 104 (2010): 85-105. Garvey, Niamh and Peter Newell. “Corporate accountability to the poor? Assessing the effectiveness of community-based strategies.” Development in Practice. 15 (2005): 389-404. Hagendorff, Jens & Clacher, Ian. “Do Announcements about Corporate Social Responsibility Create or Destroy Shareholder Wealth? Evidence from the UK.” Journal of Business Ethics, 106(3) (2012): 253-266. Kotler. Philip & Lee, Nancy. Corporate Social Responsibility Doing the Most Good for Your Company and Your Cause. New York, NY: John Wiley & Sons, (2011): 98-102. Moon, Jeremy. “The contribution of corporate social responsibility to sustainable development.” Sustainable Development, 15 (2007): 296-306. Mujahid. Mubeen & Arooj Abdullah. “Impact of Corporate Social Responsibility on Firms Financial Performance and Shareholders wealth.” European Journal of Business and Management, 6 (2014): 181-187. Paine, Sharp. Value shift: why companies must merge social and financial imperatives to achieve superior performance. London: McGraw Hill Pub. Co., 2003. 111-119. Peloza, John. and Falkenberg, Loren. “The Role of Collaboration in Achieving Corporate Social Responsibility Objectives.” California Management Review 51 (2009): 95-113. Ruggie, Gerard. “The theory and Practice of Learning Networks: Corporate Social Responsibility and the Global Compact.” Journal of Corporate Citizenship 5 (2002): 27-36. Smith, Craig. “Corporate social responsibility: whether or how?” California Management Review, 45 (2003): 52-76. Tsutsui, Kiyoteru. & Alwyn, Lim. Corporate social responsibility in a globalizing world. New York: Cambridge University Press, 2015. Widiasari, Natalia., Iedarwati, Pusat. and Isololipu, Kurnianing. “The Role of Business in Achieving Millennium Development Goals through CSR (Corporate Social Responsibility).” Bisnis & Birokrasi Journal, 21 (2015): 112-134. Read More