Stakeholders May Be Represented by Carrolls Pyramid and the Corporate Social Responsibilities - Coursework Example

ENVIRONMENTAL MANAGEMENT Name: Tutor: Course: Date: ENVIRONMENTAL MANAGEMENT Introduction Sustainable development is a people-centered concept that embodies the need to improve the quality of human life. It is based on the need to ensure nature is respected for the purpose of conservation and preservation (Babetti 2013, p 9). Often, sustainable development measures the standards of behavior and judges those standards against the ability to create quality of life with the capacity of supporting ecosystems. There are three pillars in relation to sustainable development. These pillars include the social, economic and environmental aspects of the society (Loosemore et al. 2017, p 96). The inter-relationship between these three pillars is the critical element that stabilizes the standards of life creating a balance between daily needs and protection of resources. Most national and international problems arise due to failure of having a reasonable control mechanism for each of these pillars (Loosemore et al. 2017, p 93). As a result, there are problem solving efforts through organizations each dedicated to one of the pillars (Watts et al. 2015). For instance, under the environmental pillar, there is the United Nations Environmental Programme (UNEP) and the Environmental Protection Agencies (EPA) among others (Babetti 2013, p 9). Under the economic sector, there is the World Trade Organization (WTO) that mostly focuses on the regulation and maintenance of economic growth (Loosemore et al. 2017, p 95). Lastly, there is the United Nations (UN) in general that attempts to strengthen the three pillars by ensuring that organizations under each pillar have a consensual decision making mechanism and that they have reasonable budgets. The UN has listed seventeen goals for sustainable development. Most countries around the world are working towards the achievements of these goals. These goals revolve around the need for food, education, health, good infrastructure and reliable sources among many others (Lorenz & Moutchnik 2016, p 250). Implementing a promising plan requires that the group responsible have a good organizational structure, a strategic plan, an operational plan that brings about success and change, a financial plan, good funds raised to each initiative and well-staffed structures (Segre 2008, p 50). In most cases, sustainable development plans tend to fail due to fraud and far-fetched ambitions that may be impossible to implement. Figure 1: Showing the three pillars and the interrelation in Sustainable Development. Role of Business in Sustainable development and the Embedded-ness Perspective Many things are embedded in the social structure and functions of various institutions. This means that the sustainability or the progress of one is affected by the progress or lack thereof of another. The probability that the dysfunctional nature of one completely disorients the other is the perspective behind this reasoning (Segre 2008, p 44). Looking at business for instance, there are certain aspects that clearly depict the role businesses have on sustainable development. For instance, many of the key priorities or operations that relate to sustainable development such as resources are intertwined by how many business activities are occurring at the same time in our daily lives. Some of the businesses that show the level of effect on sustainability are; the companies that emit greenhouse gases, companies that use up most of the resources, companies that require so much water and transport that may lead to emission of toxic substances and so on (Lorenz & Moutchnik 2016, p 252). This goes to show that business activities do affect many factors and contribute to the very issues that reduce sustainability. Similarly, business plays a major role in sustainable development due to the level of dependence on the private sector. For instance earlier on, the private sector became a great generator of wealth and the best facilitator in market integration. Most developing countries and economies have resulted in turning to the private sector to create relationships, offer aids and loans to the best of most economies. Due to such aid, it has been possible to create energy saving inventions, cheaper machinery, more structured systems and cost effective programmes. This clearly shows that when it comes to the economic level of pillar, the private sector is playing an incredible role in the sustainable development aspect. Concept of Corporate Social Responsibility (CSR) This refers to a form of self-regulation that is aimed at integration of businesses model to various social contexts. A good example of corporate responsibility is in how Starbucks created its practice guidelines designed towards ensuring the company’s resources grow and at the same time, the necessary resources were well utilized (Ann ink et al. 2015, p 193). Similarly, in the process of improving coffee, Starbucks evaluated the economic, social and environmental elements to create an environment that flourishes in respect of coffee production and environmental conservation. Starbucks board of directors however advice that companies need to understand the social purpose of what they do and align them to the pillars necessary for sustainable development as depicted in figure 1 above. Types of Corporate Social Responsibilities There are four main types of Corporate Social Responsibilities (CPRs). There are; a) The Environment-focused Corporate Social Responsibilities - This one focuses on reducing detrimental effects to the environment based on the corporation’s operations (Lorenz & Moutchnik 2016, p 250). The aim is to come up with innovations that ensure that at the manufacturing stage, there are measures to reduce production of substances that harm the environment. Further, the CPRs promote the use of renewable sources of energy that can result in the burning of fossil fuels instead of harmful substances. b) The Community-based Corporates Social Responsibilities-In this case, numerous corporations unite and work towards ensuring that communities are safe and well taken care of (Křížková et al. 2014, p 261). This is made possible by the help of organizations that are usually non-profit that come together and raise funds towards ameliorating affected areas of the community for better management of resources. c) Human Resource-Based Corporate Social Responsibilities-Corporations also pay attention to their own staff to ensure that there are improved living conditions. This is by extension of leaves such as the maternity and paternity leaves such that employees are comfortable and taken care of (Křížková et al. 2014, p 263). In other instances, there are corporations that also provide medical insurance that take care of those involved in accidents and probable occupational hazards. d) Charity Based Corporate Social Responsibilities-In this sense, corporations donate certain amounts to organizations and individuals to help and uplift them financially. Once there is stability in one area of life, continued development is made possible and as such, an important factor in the growth of the society. Carroll’s Pyramid Carroll organized different Corporate Social Responsibilities in a pyramid. This is by making a four-layered model with the responsibilities characterized in layers. They are the economic, legal, ethical and philanthropic layers in the ascending order (Babetti 2013, p 9). The pyramid is very significant and in most cases the responsibilities of the layers are distinct and separate from one another (Carroll 2016, p4). Generally, for a company to be profitable, it is important that the said business ensures a balance between the layers of the pyramid and the practicability of the same. It is by analyzing these aspects that one gets to understand the value of the Carroll’s principles to Corporate Social Responsibilities (CPRs) and sustainable development as a whole. Figure 2 Showing Carroll’s Pyramid There are therefore four levels of the pyramid according to Carroll. All these levels play at a specific field. Below are analyses of the four layers of the pyramid; a. The economic responsibility being another layer is one of the critical parts of the pyramid. This is because it is through the economy that businesses growth, resources are distributed, and new inventions are made and so on (Carroll 2016, p4). In many aspects, the society that relies on the economic layer are able to regulate what they are doing, minimize on risks, get profits and use the most possible inventions that reduce harmful emissions. Further, profits are necessary because it is through them that investors are rewarded and investment is bought back to the company. All CEO’s, managers and entrepreneurs can attest that there is a vita; importance of profitability and returns of investment. All economic systems for this reason recognize this and create business concepts directed towards effectiveness, marketing strategies, operations and other professional concepts all focused on long term financial success of every organization. Today, there is a hypercompetitive world and for this reason, the global business environment requires a balance of sustainability and performance both at work and of the environment. Economic responsibility has become a baseline requirement and most actions perpetrated by companies are weighed and evaluated based on how ell all conditions of sustainability are met in the process of achievement of goals. These are all critical aspects of Corporate Social Responsibility and sustainable development. b. The legal layer is responsible for the legal aspects in sustainable development. This means that they set out the clear laws and regulation that ought to be followed and adhered to at all times (Yosifon 2015, p 56). Companies and businesses are expected to comply with the law. There are sanctions, limitations and stipulations all designed to set limits on the level of freedom in use and reliance of resources and the release of wastes among others. It is in this way that the society is controlled and good results are attained, some of which are of great importance to society (Křížková et al. 2014, p 259). The law should be mirrored by the society whether what it stipulates is acceptable or not. Overall, in meeting the legal responsibilities aspect, businesses have to check on whether their performance is consistent with the expectations of the law and he government, whether there is consistency in the local area administration stipulations, whether employees conduct themselves as law abiding citizens whether societal shareholders are fulfilling their legal obligations and whether the overall services and goods rendered or produced respectively meet the legal requirements (Křížková et al. 2014, p 259). e) The ethical layer is distinct from both the law and the economic layer. Unlike the social and economic responsibilities, the ethical responsibilities are not expected of someone (Steier & Chrisman 2009 p. 1159). They are inherent feelings of how one would like to behave based on emotions, feelings, personal experiences, personal expectations and the societal view on the matter (Lorenz & Moutchnik 2016, p 251). To assert that the ethical responsibility is required would go against this rule. This is because it is dependent on people’s own choice on dealing with various matters. While meeting ethical responsibilities, there are also certain expectations of the business such as, the need to perform in a way that confirms to societal moral reforms (Lorenz & Moutchnik 2016, p 252). The individuals should recognize the evolving morals of the society, the ethical reforms of the business goals, the corporation as citizens morally and ethically and the overall recognition of business integrity and ethical behaviour that does not go beyond laws and regulations. To some extent however, societal acceptance of certain practices may be farfetched. There may be moral philosophies such as justice and rights that inform and guide company decisions and practices but at times, may not be accepted by all. It is therefore the responsibility of those affected to decide on their way forward. f) The philanthropic responsibilities are the very last. They are of great importance as they stand at the top of the pyramid. These are the responsibilities required from a corporate and a good citizen (Lorenz & Moutchnik 2016, p 250). At this level, the citizens aim to do their best to improve the quality of life of the people in the society. Likewise, this level includes the corporate contributions in terms of loans, businesses, management, communication in a world. Most companies today engage in philosophy for the reason that it is the most practical way to demonstrate good citizenship. Companies use this to enhance their reputation and not really to appear noble and self-sacrificing. In this case, business is not entirely regarded in the moral sense but rather in the ability to perform and achieve preset goals of the organization Lorenz & Moutchnik 2016, p 250). This can be by giving gifts and other sacrifices but not so as to be labelled unethical but to appear well equipped to meet the standards of the society. Overall, the philanthropic responsibility is more of a voluntary take and action and not a morale requirements as in ethical responsibilities. Applicability of the Carroll’s Pyramid Carroll’s pyramid is all about the attainment of sustainable growth especially through the Corporate Social Responsibilities Steier & Chrisman, p 1158). There are majority of executives in varying numbers of business entities that believe CPRs give the companies an advantage in competition due to the favourable responses that come from consumers. Below are case studies that show the reliance of the Carroll’s pyramid in business; a) Coca-Cola This is one of the companies that show a true measure of Sustainable development. Having started business in 1886, the company has grown over time and expanded worldwide. By the end of the 20th century, Coca-Cola had its products worldwide and in 2005, it was ranked the world’s largest manufacturing company for non-alcoholic drinks. Coca-Cola management teams have had the ability to launch a CPR policy and have sustainable development embedded in its system such in all processes of production and packaging. The CPR policies have positively grown and have enabled the company to achieve immeasurable goals in their everyday practices to improve the businesses and environment sustainability. The core areas that are relatable to this paper however are the company’s efforts towards creating beneficial beverages, healthy living, energy and climate conservation charitable funds and involvement, water stewardship and comfortable workplaces. Coca-Cola CSR initiatives are included in other activities such as the UN Global Compact Principles. b) Wal-Mart Wal-Mart has faced various challenges over the years despite the growth and development of the entity. There have been legal and social challenges based on the issue of development of code of conduct and the release of the annual reports. There is a common case of Wal-Mart Stores Inc. V Dukes that showed reports of Wal-Mart allowing child labour (Yoon 2015). There have been issues of discrimination in terms of hiring and pay and other breaches in civil rights of the employees. It was a struggle for this company to come out of this challenging time and bounce back in the market. It required well thought out CPR policies and other measures to create sustainability of the company. c) Apple The transparency of Apple’s supplier sustainability of policy has been greatly criticized. In 2010, Apple turned down various shareholders’ sustainability proposals to establish a sustainable environmental policy labour (Yoon 2015). It played a role in analyzing the climate change and the effect it has on the company. Further they established a board of directors aimed towards the sustainability committee. There are also attempts at labour and human rights that has maintained Apple as yet again one of the largest contracted companies in the world. Pros of the Corporate Social Responsibility With regard to sustainable development, it is conclusive that Corporate Social Responsibility has advanced in certain areas. Below are the advantages; a) Satisfied employees. Once a group of people becomes part of a something that advocates for good and ensures success, there are certain benefits (Capaldi 2016, p4). Among them is that people are able to have appositive attitude, show more commitment, work harder, be more driven and also encourage many other people apply for jobs. The Corporate Social Responsibility creates a sense of belonging and provides choices, the more the choices, and the more the likelihood that most people get interested and the productivity of the company is improved. b) Satisfied Customers. Research has shown that CPR has improved the lives of many customers and attitude towards the company. This is such that if a customer likes a company, he or she will buy more products and will have a difficulty changing the brand in the course of its use labour (Yoon 2015). A satisfied customer ought to enjoy the services and the overall operations for there to be a healthy supply and demand relationship. c) Positive PR. This refers to the sense that Corporate Social Responsibility (CPR) provides the opportunity for there to be exposure and publicity that benefits the marketing of the products. At the same time, positive public relations can advise on sustainability without necessarily creating conflict and unwanted hatred amongst the people involved. The environment is by far the most sensitive topic when it comes to sustainability and its preservation. For this reason, it is good to have a responsibility that shows that these concerns are taken into consideration during decision making processes. d) Similarly, thanks to CSR programs, there are certain things that do not cost money. Therefore a company that is conducted in the best way reduces costs by; having more efficient staff hired and retained, enables implementation of energy savings programs, manages potential risk and liabilities and ensures good investment in traditional advertising. e) The Rebound effect. In economics, especially those that concern energy use and conservation, there are certain beneficial aspects that off set new technology and the likely effect on environment. Rebound effect is an adaptation in most companies today. It is important because it deals mainly with the effect of technology and the overall improvement in energy consumption (Loosemore et al. 2017, p 98). The theory has come in handy mainly in the use and maintenance of natural resources and has created a ratio suitable for corporate social responsibility due to maintenance of environment and use of energy. f) More business opportunities. A CSR program requires that there is constant dialogue with all the relevant parties to a transaction (Loosemore et al. 2017, p 98). These are the suppliers, the customers and other people involved with the organization. This definitely enables progress and growth in business and the overall advancement in all other relevant areas. Cons of Corporate Social Responsibilities There are various disadvantages as well of CPRs. a) Company Reputations is affected. CPRs are all about accountability and transparency. This means that companies have to disclose their shortcomings and their financial positions, as well as, the efforts made towards environmental and company improvement. b) Creates a shift from profit making (Capaldi 2016, p4). Under the CPR, the company must first forget their obligations towards profit making and engage in projects aimed at improvement of the community welfare (Watts et al. 2015). Instead of income efforts, the intention is changed to profit making obligations. c) The acts of Green Washing. This in reference to the misleading acts of most companies with regard to environmental practices. Due to Corporate Social Responsibilities and Carroll’s Pyramid, many companies have certain thresholds to reach. As a result, most companies feign their intention to conform and perform and produce products and services that are contrary to these principles. This is a very common practice because of the pressure to achieve a specific reputation that is required and has greatly reduced the articulation of CSRs. d) There is an increase in the cost of production. Including CSRs in the company processes increases the expenditure of the company labour (Yoon 2015). There are increased in energy saving products, environment friendly resources and so on. Large corporations in particular experience a large hit in this context. Conclusion Overall, it is clear from the analysis above that every stakeholder may be represented by Carroll’s pyramid and the Corporate Social Responsibilities. The stakeholders are affected by each and every level of the pyramid to the extent that development may not be as successful if a certain aspect of the pyramid does not marry with another. For instance, in most cases, most legal issues arise out of failed relationships or poor decisions and as such it is critical that all layers are well balanced to avoid the failure of one at an attempt to succeed over another. Clearly, the engagement between consumers, employers and employees are all important in the overall performance and development of a corporate and subsequently, the environment. References Ann ink, A., den Dulk, L. and Steijn, B., 2015. Work-family state support for the self-employed across Europe. Journal of Entrepreneurship and Public Policy, 4(2), pp.187-208. Babetti, H., 2013. Ethical Responsibilities of Multi-National Corporations: A Critical Analysis of Why Morals Matter. Sociological Imagination: Western’s Undergraduate Sociology Student Journal, 2(2), p.9. Capaldi, N., 2016. New (other?) directions in corporate social responsibility. International Journal of Corporate Social Responsibility, 1(1), p.4. Carroll, A.B., 2016. 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