The paper "Emergence of Corporate Social Responsibility in China" is a perfect example of a Management Case Study. The concept of “ corporate social responsibility” as becomes very popular among many businesses in the world. Many businesses, especially in China, are using the concept to build their brand and increase brand loyalty. CSR has become increasingly important to international companies as the competition becomes stiff because of increased consumer choices due to the presence of many varieties of products in the market. Recently, the Hong Kong and Shanghai Banking Corporation, which is a subsidiary of HSBC, started using CSR to increase the chances of success of their brands in China (Rice 2014).
Jaguar Land Rover has also embraced CSR in the country. Businesses have ignored CSR in the past but with the current dynamic business environment, they have realized that they can no longer do without it. This paper analyzes the emergence of CSR in China, why CSR is vital to brand success and points out the challenges that organizations face in developing CSR. Corporate Social Responsibility. Corporate Social Responsibility is a significant issue in today’ s business environment.
The concept has many different definitions. Small Business Commissioner (2014) defines CSR as a term that describes the manner in which businesses take into account the environmental, financial, and social impacts of actions and decisions of their activities. CSR is a way, in which organizations integrate environmental and social concerns in their operations and their dealings with the organizations’ stakeholders on a voluntary basis. According to Ruhnkorf (2015), the Confederation of British Industry (CBI) describes CSR as companies’ acknowledgment that they should be accountable for both of their activities impact on the environment and or the society and financial performance.
The definition of CBI adds that CSR is a business drive, voluntary, and often goes beyond the legislation requirements. There are two forms of corporate social responsibility, which corporations can consider. In the first type, a corporation can provide resources and funding for worthwhile social causes. These social causes include donating employees’ time to charities or to activities that raise money for charities and donating money to charities. The second type of CSR involves laying down a plan that produces services or products that serves the best interests of the society in which the corporation is located.
These include activities like using raw materials that do not pollute the environment when manufacturing products. More also it includes corporate environmental initiatives and activities such as economic development and job creation. The emergence of Corporate Social Responsibility in China. China is becoming more integrated globally, and CSR is steadily taking a central role in business. Zhao (2014) explains that CSR is a vital issue for a business that aims to achieve long-term sustainability and success.
According to Zhao CSR is believed to be a westernized invention that arose concurrently with modern industrialization. He adds that there is evidence that CSR in developing countries China included draws strongly on indigenous philanthropic cultural traditions, community interactions, and business ethics. China is known for its high population hence providing cheap labor for manufacturing companies. More also it offers a big market for assorted products and services. Encouraged by 1978 economic reforming China and accession to WTO in 2001, multinational companies flocked the country bringing with them innovative technologies.
More also they brought with them new business traditions and practices. The CSR was among these new business traditions but was not well noticed until the 2008 disastrous earthquake. Many corporations are implementing CSR and integrating CSR facets into their business operations. As businesses begin, operate globally, they are increasingly being held accountable to ensure that they conduct their businesses in a responsible manner. Jaguar Land Rover has established children and Youth Dream Foundation worth 4.86 million pounds.