Social Responsibility Strategy for a Company - Assignment Example

Company social responsibility Your name Subject Date of submission Introduction Social responsibility is the accountability of an organization for the impacts of its decisions and activities on society and the environment through transparent and ethical behaviour. Today’s business practices demand nothing less from companies seeking to add to their triple bottom line (people, planet, profit). The organisations ethical behaviour should be consistent with sustainable development and the welfare of society (Paul, 2007). In addition, the social responsibility strategy should be consistent with the expectations of stakeholders, applicable law and international norms of behaviour. This paper seeks to develop a social responsibility strategy for a company. The strategy developed will include a focus on environmental considerations, sustainable business practices, and the ethical decision making on the part of the leadership that will implement the plan. In addition, the developed social responsibility plan will be in compliance with all government regulations that affect the industry. The planned social responsibility strategy will be subdivided into, Environmental considerations and recommendations (planet) Ethical leadership considerations and recommendations (people) Organizational viability considerations and recommendations (profitability) Legal and regulatory considerations and recommendations Environmental considerations and recommendations (planet) Developing a sustainable environmental strategy for the company is an essential step towards moulding a successful company. It is important for the company to implement environmental conservation practises as any negative approaches of the company to the environment could mean significant decrease in non-renewable resources, environmental degradation and provision of toxic substances to the environment (Raven, 1993). A successful company cannot operate in vacuum. It must react towards environmental factors that can influence its success either negatively or positively. If not monitored effectively, external business factors such as environment affect the main company and its strategies (De, 1982). It is the liability and duty of a company to work in the interest of the people and the environment within their scope of operation. Companies have crucial responsibility of ensuring that they continue to work in desirous of fulfilling their customers, employees, shareholders, community and the ecology needs. Their social responsibility is pertinent in determining their ethical, environmental and leadership repercussions to the society in which the organization is situated. Adhering environmental friendly responsibilities act, as a boost in creating mutual, peaceful coexistence and proper working relationship between the company and its surroundings. A company which achieves the set target and goals is the one which works in the concern of the people and the environment. For successive performance, the company will have to incorporate the following environmental and ethical measures. Environment is the core engine for thriving of any company. According to Susan S. Davis, Demand Media, to effectively achieve this, the company should institute voluntary hazard elimination program. This should aim to eliminate production practices that could cause harm to the public regardless of whether they are required by the law. This should be instigated by one of its departments which should act as a step to protect the community from exposure to perilous substances. Activities under this should include creating education and awareness forums. Occasional seminars should also be organized with a representation of member from the community where they are given information on the precautions of some gases eliminated from the industry and other dangerous activities. Further awareness should be created through posters, and broadcast through media. Survey should be conducted among members of the community to assess the impact, like incase of noise how many member of the community have been affected. All disposal and other chemicals eliminated by the company should be treated before release. The company should also create a regular cleanup program where some of its employees and other hired individuals should carry out a cleanup in areas situated within the company to clean the mess the company may have caused within that given period of time. Reuse of products and other properties is an important part in helping to conserve environment. The company should reconsider reusing some of its products to save the environment and the cost. Materials like plastics should be reused to serve other purpose like a Jeri can used for carrying paraffin should be washed and reused to carry water instead of it being disposed. Office carpets that are torn should be put under and then a new carpet displayed on top. Construction materials from a demolished building should be saved for other purpose. Recycling is another pertinent social responsibility strategy. The company should create an environmental friendly society. Instead of throwing of rubbish in the bins this should be recycled. Waste from the company should be recycled to create biogas, which help in reducing harm to the environment and the same could also save the cost of using electricity for production. The company should also sell plastics and bottles to interested parties who want to recycle and reconvert the use. As a step to creating proper coexistence between the company and the community, the company should aim at using green products in its production. It should use natural wool insulation instead synthetic; insulation should be used instead of more heating. Furthermore, it should consider using rain water like in flushing of toilets, watering of its flowers and any other relevant activity instead of using water supplied from towns within. Energy appliances with low electric consumption should be used. This will help to avoid high heating which can be damaging to people within. Environmental friendly paints should be used; the company should avoid using paints which have very tough chemicals and high intensity of smell which in return can create breathing complications to those using it and the people staying around the company. The paint can also be damaging to the plants within. As a company which cares about its people and the environment, this will be a great social responsibility strategy in helping the company to achieve its set objectives. More people will be willing to work with the company. As a part of practicing social responsibility, the company should revitalize the nature of its products and give more emphasis on using local products. Use of local products helps to save the transportation cost and boosting the level of development within the region. Members of the community should be given contract to supply raw materials to the company. The company should go a further step in helping local plant raw materials. It will be beneficial to the company as money spend on philanthropic activities on community. Repair of vandalized equipment of the company will be an imperative step in helping to save the cost of production as well as creating an environmental friendly society. Broken furniture should not be disposed instead they should be repaired. This will ensure that the amount that could have been used in purchasing new once is used to benefit the employees like increased allowances and salaries. The cost will also be diverted to the promotion of the community and being diverted into other activities that will lead to the expansion of the company. How the company handles packaging of its various products will determine the kind of social responsibility it is playing. Packaging in Clear plastics and polystyrene which are in huge quantities is disastrous to the environment. The company should aim at advising their customers either to use cartoon boxes for carrying their goods or carry them unpacked. The goods should also be packaged in small quantities to aid easy transportation. Apart from just being beneficial to the environment, it will act as a step in helping the company to reduce cost of its expenditures. Pollution can be regarded as violation of social responsibility and failure to appreciate the value of environment and the people within it. According to Susan (2013), a company should have pollution regulations rules which ensure that no harmful disposal items are remitted to the environment. The company should consider doing away with toxic solvents and embark on the use of biodegradable materials. Instead of plastics they can decide to use wood. It should also ensure that it comply with government set rules regarding the environment. It should minimize on the noise. Have chimneys to control the smoke remitted. Water should be treated before being released to the rivers. Furthermore when considering purchasing new equipment for your company operations have in mind their environmental repercussions. This will help to create an environmental healthy society hence social responsibility in place. Ethical leadership consideration and their recommendation It is vital for the company to have well thought and reviewed ethics. Having the following attributes; fairness, respect, reciprocity and impartiality in dealing with stakeholders, employees, customers, vendors and anyone else is an important step in building a successful company. The company will have to adhere to the following ethical social responsibilities; Initiate a philanthropic program which aid to assist the community. The company should make contribution to the community either in form of monetary or any other form. This program can be implemented annually where scholarships are offered to brighter kids in the community. Amount from the gained profit should be set aside for this purpose. The company should also boost medical level in the community. It should take part in the construction of dispensaries giving free medical care. Education will help people within the society to acquire imperative skills that will stir reduction of poverty and also creating a healthy environment. Occupational health and service safe conditions should be consideration that the company should have in place. Workers should be provided with medical cover and safe working conditions. Employees should also feel free to bring out any potential that seems to be threatening their health. The company should take this in a very friendly manner. Workforce is a very important engine for the growth of any company and so the company should have employee recruitment program that is fair and impartial. They should also give keen interest to the communities within and also other clients who are affiliated to the company. It is necessary for a company to provide education to its customer on the use of the products as well as informing them on their benefits. The company should initiate an educational system which strives at educating their customer on the use of the products. Like on how to administer their drug products. They should also be in a position to know the benefits and the side effects of the drugs. This does not only serve to be good to the community, but also helps to build trust and love between the company and the customers hence pull in more and later high profit return. It is mandatory for any company to give loans and credit to its employees and other relevant people. The company under the finance department should create a section where its employees are able to access soft loans and credit either to pay school fees for their children or carter for any other family needs. There should be a set amount of money which an employee is allowed to borrow. Scholarships should also be provided to employees; the company should sponsor its workers to pursue further studies. This is a critical step as it will aid in broadening the expertise of the work force which in return may results in new innovations and techniques being planted in to the company. It is imperative for the company to engage in a community development. It should create a comfortably environment where the public can comfortably work and live. It should set a foundation where member of the community can get education. Organizing regular tournaments for the youth will be a very important step in incepting them as pertinent publics of the company. The company should provide quality products to its customers at a cheaper price. It should do this even in case of inflation. This aids in building customer trust towards the organization. It also helps those who are not in a position to afford expensive goods to have a chance. The company should also consider packing the goods in large as well as small quantities to be able to serve all level of income in the society. Moreover, the company should set clear decisive policies which are streamlined towards understanding of the expected objectives. The policies should be written down and everyone in the organization should understand the policies. The company should clearly state the part of the community in the organization; what are the benefits they are to achieve from the existence of the company? What are the environmental regulations? This should be made clear and everyone should work towards that. The company should embrace transparency and accountability in running of its activities. There should be a set procedure to understand like which activities is the company going to engage in within the given period? What is the total financial cost? This should be put on the company’s notice board. Various stakeholders should also be given the opportunity to inquire what is happening within the organization. Employees are pertinent constituents of the company as a result the company should create employee motivation scheme. Excelled employees who have shown tremendous growth in their sector should be awarded; they should be given promotion from their current position. Employees’ salaries should be reviewed yearly depending on the financial growth of the organization. The company should also carry out regular promotion where gifts are given to the customers. They should allow the customer to participate in the promotion and then carry out a draw where the winner is rewarded. In order to be successive, the company should set up proper communication channel where various publics are allowed to communicate to the company. It should allow the public to question the authority, demand what they think the company should be doing for the society. It should also create an inclusive work force which has a representation of people from all level of income, ethnicity and religion. This will help to create proper and fair leadership. Everyone will be willing to be associated with company. There should be honesty, respect and fairness from the company. The company should allow state of collaboration. It should be able to corporate with diversified group of people in regardless of their level. It should institute a program where people are allowed to air out their suggestions on what they think the company should be doing. The company should have committed employees who are there to serve the interest of the company and the customers and not their own interest. Consideration of all the above will create a company which has excellent corporation with its customers and all social ethical responsibilities are put in place. Organizational viability considerations and recommendations (profitability) The following factors must be taken into consideration in developing an effective company CSR strategy; the firm’s values and ethics; these are organization’s beliefs and code of conduct that guides its operations. They dictate how everyone in the organization carries out his/her daily operations at work. They must be at play in coming up with CSR programs that are acceptable by everyone the organization and that implementable without much objections or resistance (Paul, 2007). The key CSR issues at play; It is important to identify the CSR issues that are affecting or could affect the firm, presented both within and from outside the organization. Such issues may be the past CSR activities employed by organization, the current CSR trends in the environment, CSR strategies employed by other organizations, etc. This enables a proactive approach in developing CSR activities The key stakeholders and their concerns (Paul Hohnen, 2007): It is sound to identify company’s Stakeholders and their concerns. These concerns must then be taken into consideration in developing CSR strategies so as to eliminate potential conflicts and resistance to an organization’s CSR program when they are eventually implemented. These concerns may also give a clue on the most suitable strategy to employ. The current corporate decision making structure: Organization’s decision making structure may facilitate or even hinder implementing a more integrated CSR approach. It is therefore important to understand decision making structure so as to come up with a relevant strategy that fits into the organization without impediments or major adjustments in timelines. It may be necessary to involve the management at all stages in developing the strategies. The human resource and budgetary implications: It is necessary to understand the recourse base of an organization. The company may want to know how much finances it has to develop these strategies. How many employees needed to successfully develop and implement the strategies? This is very important as it determines the company’s capability in implementing any CSR program to be adopted. The CSR strategy chosen must be within the financial reach of the organization. (Paul Hohnen, 2007). Existing CSR-related initiatives; it is also important to know which initiatives are already employed both by the organization and its competitors. You may want to know if these initiatives are succeeding and whether there could be need to continue employing them as CSR strategies, or whether or not they could be incorporated in the new strategies. This will enable the organization develop unique CSR programs that will best meet its needs. The above considerations would determine whether the strategies developed are feasible, economical and practical. They may also enable the organization identify the main risks and opportunities presented by the environment, to see which CSR strategy is viable given the organizations resources and the environmental expectations. (Paul Hohnen, 2007) Corporate Social Responsibility strategies; CSR strategy is a road map for moving ahead on Social Responsibility issues of an organization, setting direction and scope over its long term success by using its resources within its unique environment to meet market needs and fulfill stakeholder expectations. (Paul Hohnen, 2007). It may not be wise to only one approach in managing CSR. The said company may opt for one, some or even all the CSR strategies discussed below. The proposed CSR strategies could work for any organization, irrespective of its size. Focus on Human rights; it is expected of all organization to respect all the fundamental human rights in handling their employees and customers. The company may choose to concentrate human rights as a CSR strategy, ensuring all stakeholders’ rights are respected. None of its stakeholders should feel discriminated on or treated unfairly. This strategy does not need many resources and may work for any organization. Focus on Company Human Resource; the organization may opt to strategize on how to recruit and maintain their Labour force and use this as a CSR platform. It may decide to give priorities to natives, especially for non-skilled labour. It may also give better remuneration as well as ensure job security to its employees. This is a less costly strategy that may change the perception of the public towards the organization within no time (Markovic, 2008) Enterprise and economic development; the organization may also get involved in Enterprise and economic development programs. It may participate in local development programs or even take part internationally in developmental issues to give back to its stakeholders. It may partner with governmental institutions as well as nongovernmental organizations in identifying areas of need and actively taking part in meeting such needs. Focus on International standards; it is expected of any business to uphold international business standards and corporate governance. This may be costly and many businesses would shy off from it. The company may take advantage of this and come up with programs that out do its competitors in the market. The company may opt to take part in environmental protection and conservation as a way of giving back to the society. It is believed that organizations, in carrying out their operations interfere with the environment and taking part in environmental conservation would not give back to the society but also rectify this belief. Taking part in Health and Education programs; Health and Education are issues in various part of the world, especially in third world countries where people can hardly afford them. The company may choose to support the disadvantaged members of the society to access these services through partnership with other corporate, partnership with the providers of such services or with the government. It may start sponsorship program as a CSR strategy Disaster Management Programs; in times of need, the company may participate in human disaster relief. They can join hands with other players to help the affected people. Such aids may be in the form of relief food, clothing, rescue programs, etc. This offers a unique way of assisting the society when they most need the organization (Markovic, 2008). Recommendations Adopting one or more of these strategies, depending on the prevailing conditions would dictate an organization’s general performance and profitability. The following six steps may be used to develop a CSR strategy. (Paul Hohnen, 2007). Build support with the CEO, senior management and employees; Research what others (including competitors) are doing and assess the value of recognized CSR instruments; Prepare a matrix of proposed CSR actions; Develop options for proceeding and the business case for them; and Decide on direction, approach, boundaries and focus areas. This will minimize chances of conflicts and resistance. Legal and Regulatory Considerations “It is believed that there is no human history of private voluntary initiatives in the absence of a basic framework mandated by government and trade unions controlled by their members, protecting, in a comprehensive manner, rights of workers”. (Jim Baker, ICFTU). Even voluntary approaches to CSR are believed to have a legal context. Laws on misrepresentation and voluntary approaches such as company codes of conduct can set the standards of care that are legally expected of businesses. In most organizations, agreements reached through collective bargaining between employers and employers through trade unions can become legally binding through incorporation in employment contracts. (Halina Ward, 2003) There has been development of new legislation that are aimed at holding legally accountable organizations in developed countries with negative impacts of operations in developing countries. These actions aim test the boundaries of existing legislation in relation to difficult issues of CSR and are aimed at ensuring fair play between organizations during their operations (Halina, 2003) The first set of these actions focuses on the application of principles of international law to multinational corporations. It reflects the call for multinational corporations to adopt minimum international standards wherever they operate. It also tests the boundaries of the existing international legal framework in its application to companies. A second set of the actions focuses on general principles of civil liability, for example under the law of negligence. These cases propose that companies should apply ‘best practice’ wherever they operate and every organization is held accountable for their actions. Laws and regulations focusing on human rights; There is a legislation that focuses on human rights abuses, or violations of labour rights, as well as in the supply chain. It proposes that responsible corporate citizens should accept responsibility for negative impacts on their employees and their clients as well as in their supply chain, not limited to companies in the same corporate group. This legislation can be looked at in the following sub headings. (Halina Ward, 2003) The first set of these laws prohibit discrimination of workers at work place. It also protects employees from harassment. Every employer is expected to offer equal opportunity to all employees and treat fairly all its employees. Any conduct that is against these provisions has legal implication and must be avoided at all cost. It is important to note that these regulations apply internationally. The second set focus on work environment. They include occupational health and safety at work place, terms and conditions of employment, minimum wage rates, dispute resolution platforms, minimum age for employment, etc. again these are internationally agreed regulations. The third set regards Native Title. This set addresses economic, social welfare and cultural rights of individuals. It includes property rights that allow every individual freedom to own property. The fourth set impose liability on companies whose acts impact on human rights. Such acts include bribery of foreign officials, crimes against humanity, corruption, etc. Such laws are based on international standards and apply internationally. Laws and Regulations on Information given to the Public; this set of law that has gained popularity as far as CSR activities are concerned. It regulates on misleading advertising or deliberate misrepresentation of an organization to the public. It may be applied in the context of CSR tools such as company reports or press releases company advertisements and sales promotion. Every organization is expected to give true information about its operations and products. Otherwise, they remain accountable for misleading information given to the public and the potential effect of such information of the public. (Halina Ward, 2003) Laws and Regulations relating to the Environment; the last legal consideration is the law on environment. Every organization is expected to take care of the environment and should be held accountable for any action that destroys the environment. Any organization should not only protect the environment but should also conserve it. Their CSR programs must be in line with the provisions of these laws. (Halina Ward, 2003) Recommendations Any organization in pursuit of CSR program must understand fully the legal provision and regulation both in the local and international market. A good CSR strategy and the firm’s reputation can be quickly damaged if it is found to be in breach of basic laws. (Paul Hohnen, 2007). These regulations must then be taken account of in every stage of these programs as breach of any is has implications. If necessary, professionals may be involved in interpretation of the regulations as well as in development and implementation of the CSR programs (Halina Ward, 2003) Conclusion Corporate Social Responsibility can be used as a competitive tool to out compete others through good public image as well as increased profitability. However, this will only happen if the CSR program is successful. It is therefore important to consider all the proposed factors and follow the right steps in development of CSR strategy. List of references Paul Hohnen (2007), Corporate Social Responsibility, an Implementation Guide for Business, Journal on Strategic Management, 32-35, 52-54 Halina Ward, 2003, Legal Issues in Corporate Citizenship, Term Paper on CSR 4, 6,9,15 Top of Form De, G. R. T. (1982). Business ethics New York: Macmillan Pub. Co Lyon, T., and Maxwell, J. (2004), Corporate Environmentalism and Public Policy, Cambridge, Cambridge University Press. Margolis, J., Elfenbein, H., and Walsh, J. (2007), ‘Does It Pay To Be Good? A Meta-analysis and Redirection of Research on the Relationship Between Corporate Social and Financial Performance’, Working Paper,Harvard Business School. Portney, P. (2005), ‘Corporate Social Responsibility: An Economic and Public Policy Perspective’, in B. Hay,R. Stavins and R. Vietor (eds), Environmental Protection and the Social Responsibility of Firms, Washington, DC, Resources for the Future. Stavins, R., and Vietor, R. (2008), ‘Corporate Social Responsibility through an Economic Lens’, Review of Environmental Economics and Policy, 2(2), 219–39 Top of Form Raven, P. H., Berg, L. R., & Johnson, G. B. (1993). Environment, Fort Worth: Saunders College Pub. Read More