The paper “ Corporate Social Responsibility and Risk Management in Property Projects” is an excellent version of a research proposal on management. This chapter presents a background of the study, the rationale for the selected topic, a brief exploration of the principles of corporate social responsibility (CSR), the relationship between CSR and risk management (RM), aims and objectives, and an outline of the research methodology that will be employed in the study. BackgroundCorporate social responsibility (CSR) is a way in which organizations integrate economic, social and environmental concerns into their decision making, culture, values, operations, and strategy in an open and accountable approach and thus create wealth, establish improved practices and develop the society (Dunphy, Andrew & Suzanne 2003, p.
5). Grant (2009, p. 16) defines CSR as engagement in beneficial activities that do not have negative effects on the economic, social and natural environment surrounding businesses and individuals presently and in the future. As such, an organization embracing CSR upholds three main principles, namely, economic sustainability, environmental sustainability, and social sustainability. As Beth and Singh (2005, p. 12) point out, CSR principles enhance the broad engagement of stakeholders in organizational activities and enhance the reputation of an organization in the eyes of stakeholders.
Importantly, embracing CSR principles enhances the ability of an organization to effectively manage economic, legal, social, environmental and other types of risks. Precisely, CSR is related to RM by providing intelligence about the potential risks and by offering an effective means for responding to these risks (Smith 2010, p. 20). As Walsh (2000, p. 135) explains, RM is part of project management carried out within organizations. Project management is the application of techniques, knowledge, skills, and tools to a range of activities that constitute a project with a central aim of meeting or exceeding the expectations and requirements of the stakeholders.
According to Walsh (2000, p. 135), in order to meet or exceed the requirements or expectations of stakeholders, project management has to keep a balance between the time, resources, quality and scope of the project in question. These elements interact with each other in a way that makes each intended process to give the desired outcome unique.
The unique process leading to the desired outcome is called a project. Sometimes, these elements interact to form systems or projects that are complex and dynamics within organizations. To achieve successful outcomes in such projects, organizations select project managers to deal with specific issues such as risks, human resources, finance, communication, and technical issues. Dominelli (2011, p. 432) explains that all risk management activities carried out at the top management level of a project should make consideration of the interests of external and internal stakeholders. Organizational stakeholders who are interested in the performance of organizational projects include shareholders, customers, suppliers, employees, communities, governments, international organizations, non-governmental organizations and others affected by a firm’ s activities.
By giving consideration to the interests of the stakeholders, the top management would ensure that a project attains success and is secure from the adversity that would occur as a result of ignoring their contribution (Lawrence 1998, p. 232). Therefore, CSR principles are relevant to RM in property projects. The rationale for the TopicNumerous scholars have paid attention to the connection that exists between CSR and RM in organizations. However, there is limited literature focusing on the relevance of the connection between CSR and RM in projects.
Risk in project management implies the possibility of harm arising from an activity or the possibility that a project might not progress in the future. As Edwards and Bowen (2005) explain, there has been an increasing need to establish the potential risks that are related to projects in order to find ways to mitigate or avoid them. According to Bourne (2007, p. 2), the success of a project relies on three pillars, namely, management of uncertainty, maintenance of project relationships, and delivery of value.
To achieve success, there is a need for alignment of the performance metrics and management of the project with the perceived needs of the stakeholders. Alternatively, this step may encompass negotiation within the established connections in order to align the perceived needs with the feasible results of the project. As Bourne (2007, p. 4) elucidates, the three elements have to be combined for a project to be successful as indicated in figure 1.