Discuss about the Institution Of Corporate Social Responsibility.
The overarching term corporate social responsibility is a business approach which enables the organization in taking responsibilities for social and environmental wellbeing for all stakeholders. CSR is the organizational policy in rendering goodwill in order to maintain business sustainability in market. Maintaining corporate governance ethics, social activities, government sponsorship, health and safety issues are part of corporate social responsibilities that organization has to face. Cochlear limited is one of the most prestigious ASX brands occupying a predominant place in the realm of healthcare industry (cochlear.com 2018). While expanding the brand in international market Cochlear limited has decided to conduct several corporate social responsibilities for maintaining organizational image and reputation. In last few years it is observed that business experts are not following corporate governance ethics properly while dealing with the employees properly. As a result, the rate of employee attrition has been increased enormously. As a result, Cochlear limited has decided to be involved in several social activities for the wellbeing of both internal as well as external stakeholders for regaining their organizational image and reputation.
In last five years, it is observed that Cochlear limited is facing immense challenges in maintaining organizational glory and reputation due to immense employee turnover at a time. People belonging to various geographical backgrounds and attitudes are associated with the business services of Cochlear limited. Therefore, the organization needs to maintain proper ethical considerations and corporate governance structure at the workplace. Somehow it was identified that employees belonging to diverse cultural backgrounds were facing immense challenges in getting accustomed with the work environment. Business experts were not cooperative enough in resolving the linguistic barrier faced at the workplace (Tai and Chuang 2014). As a result, both the customers and the service providers are facing immense difficulties in communicating with each other. Employees are unable to maintain an effective rapport at the workplace. As a result, employees failed to show their interest in providing effective services. Automatically, the organization has lost their organizational glory in the health care industry (Flammer 2015). In this situation, the study has decided to make detailed analysis on how corporate social responsibility is highly effective in maintaining organizational goodwill.
The aim of this very specific research is to evaluate the impact of CSR activities on organizational goodwill. The objectives of this very specific research are as follows:
As already stated the study has focused to make detailed research proposal based on the impact of CSR activities on organizational goodwill. The entire study would be completed within 12 weeks. In order to reach the research goals and objectives the study would focus on making critical literature review along with using primary source of data collection technique. While conducting the entire study the researcher would focus to make detailed data analysis by using proper data analytical tools. Respondents involved in the data collection technique would not be forced for providing necessary information. The researcher would like to accept the spontaneous participation of the respondents. After conducting detailed research method the study is expected to get positive outcome. The limitations that would be identified while conducting the study would be overcome in future.
Methodology is one of the most significant tools for collecting appropriate data and information from various sources. In this very specific study the researcher would like to select positivism research philosophy with deductive approach. As a result, based on the existing theories on CSR the data would be evaluated with keen observation.
In order to collect appropriate data survey would be conducted by involving 100 employees of Cochlear limited. Qualitative data collection technique is not used in this study as the research issue needs to collect response from the employees primarily (Clapp and Rowlands 2014). In addition, while analyzing data and information the study would like to conduct effective select regression analysis for proving two major variables of research.
Schwartz (2017) depicted that corporate social responsibility (CSR) is a concept where an organization take business initiatives that put impact on the society, internal and external stakeholders and also on the environment. Crane., Matten and Spence (2013) on the other hand stated that CSR delivers economic, social and environmental benefits to all their stakeholders and most of the times company opted for some major CSR activities like promoting education to the backward community, promoting gender equality, improving material health, empowerment of women and eradicating poverty and hunger.
According to Tai and Chuang (2014) there are several types of CSR activities- environmental CSR which emphasizes on eco-friendly initiatives, community based CSR that focuses on the quality of life of the people, philanthropy in which company donate money to external corporation for some goodwill and HR based CSR that is adopted for wellbeing of the staff. Bondy, Moon and Matten (2012) stated that companies implement CSR activities for the following reasons:
Brammer, Jackson and Matte (2012) stated that if an organization adopts effective CSR activities, the employee of the same company started having positive attitude towards the company. The prime reason for the sense is that employee intends to work with an ethical company that not only thinks about their profitability but also for the betterment of the community. Some companies include their employees for voluntary works like helping senior citizens and backward society and also offer paid training to these employees.
Low and Ang (201) depicted that people also intends to associate with such organization, who adopted initiatives for the advancement of the society through their business functions. Kitzmueller and Shimshack (2012) furthermore stated that strong record of CSR helps in attaining efficient customers’ attitude towards the company. This approach will moreover result in strong customer base and more word of mouth promotion which will enhance the number of customers further (Bondy, Moon and Matten 2012).
Implementing efficient CSR activities and process in the business helps the organization to retain their employees for longer times which reduces the cost involvement required for recruitment and hiring (Schwartz 2017). Moreover, investing one time capital for implementing energy savings programs leads to reduces costs of electricity and wastage. Crane, Matten and Spence (2013) also portrays that the company on gaining the label of an ethical company have to less investment for traditional advertising.
Kim, Park and Wier (2012) stated that company, who already associated with CSR activities; desire to choose only those stakeholders, who are ethical in their business terms. In addition to that, the companies also provide training effective sessions to their stakeholders in order to align their business objectives resulting effective partnership and developing more organizational to adopt CSR activities for the advancement of the community and their people.
Volunteer grants are the source to lending helping hands to different community and eligible nonprofit organizations. Inyang (2013) stated that there are several organization that provide some financial amount based on per hour associated with the voluntary works. Some of the organizations also provide effective recognition to the employees (Baumann-Pauly et al., 2013). These aspects allow the organization to get more numbers of voluntary participation of the employees.
Community involvement program indicates that organization involves some of their working personnel for performing voluntary activities like blood donation camps, rescue teams, environment protection works and activities related to recycling (Servaes and Tamayo 2013). The employees will get benefits like paid leave of absence, social service leave and financial benefits, if they are associated with these programs (Cheng, Ioannou and Serafeim 2014).
Jo and Harjoto (2012) stated that every company provides food to their staffs. In order to utilize the daily remaining food of the office to the poor community people so that they can also get enough food for the survival. This activity will enhance the organizational reputation and image in the market.
Apart from developing products for the customer aiming to attain profitability, the organization can develop a range of products for the community people at free of cost. Chin, Hambrick and Trevino (2013) stated that this voluntary activity allows the organization to reach to many community in times of need. Kim, Park and Wier (2012) also depict that serving community with free products can be done during the time of crisis and any political turbulence in the society.
One of the most effective ways to do Corporate Social Responsibility Activities is to sponsor education to the children (Grayson and Hodge 2017). Another way to accomplish this activity is to donate a percentage of the profit in the academic institutions. Hopkins (2012) stated that company can supply pencils, pens and notebooks for the students. Sponsoring money for the knowledge development of the future generation in enhancing the economic stability of the nation as the education will help them to get the employment in reputed organization.
In order to raise the awareness of social and environmental issues, company can also provide training and meeting sessions concerning environmental practices. Crane, Matten and Spence (2013) furthermore stated that companies can also promote this session to the nearby educational institutions and universities or in public so that school students and the general public can get knowledge about the environmental concern and the actions that the company is planning to curb the adversity.
Rexhepi, Kurtishi and Bexheti (2013) stated that setting standards for the organization and value those policies also showcase the CSR activities concerning the internal stakeholders. Grayson and Hodges (2017) furthermore depicted that policies like safe and fair working conditions and guiding principles for avoiding discrimination also motivate the employees to associate with the organization for longer time.
Conclusion:
The study has focused to make detailed overview about the importance of CSR and corporate governance ethics at the workplace. Maintaining corporate governance ethics, social activities, government sponsorship, health and safety issues are part of corporate social responsibilities that organization has to face. People belonging to various geographical backgrounds and attitudes are associated with the business services of Cochlear limited. Therefore, the organization needs to maintain proper ethical considerations and corporate governance structure at the workplace. While conducting the entire study the researcher would focus to make detailed data analysis by using proper data analytical tools. The study would like to focus on giving proper recommendation for overcoming the research issue. In addition, the business experts need to maintain anti-discrimination act, gender equality act at the workplace. After conducting detailed research method the study is expected to get positive outcome.
After conducting the entire study, it is evaluated that the Cochlear limited is unable to maintain proper corporate social responsibility due to some of the most specific reasons. Economic constraint is one of the most effective reasons due to which the organization has to face difficulties in conducting effective social activities for the wellbeing of human. However, it can be recommended that Cochlear limited should enhance their budget for the purpose of corporate social responsibility (Saeidi et al. 2015). In addition, the business experts need to maintain anti-discrimination act, gender equality act at the workplace. Automatically, the organization would have to focus on dealing with the customers effectively the employees coming from diverse cultural backgrounds would not have to face challenges in surviving at workplace. Moreover, as per corporate governance ethics the business experts need to implement health and safety act at the workplace. Health and safety act would help the employees in getting proper assistance from business experts when they have to face health issue at the workplace.
Reference List:
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Bondy, K., Moon, J. and Matten, D., 2012. An institution of corporate social responsibility (CSR) in multi-national corporations (MNCs): Form and implications. Journal of business ethics, 111(2), pp.281-299.
Brammer, S., Jackson, G. and Matten, D., 2012. Corporate social responsibility and institutional theory: New perspectives on private governance. Socio-economic review, 10(1), pp.3-28.
Cheng, B., Ioannou, I. and Serafeim, G., 2014. Corporate social responsibility and access to finance. Strategic Management Journal, 35(1), pp.1-23.
Chin, M.K., Hambrick, D.C. and Treviño, L.K., 2013. Political ideologies of CEOs: The influence of executives’ values on corporate social responsibility. Administrative Science Quarterly, 58(2), pp.197-232.
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cochlear.com 2018. Cochlear. Available from https://www.cochlear.com/intl/home Accessed on 2018.
Crane, A., Matten, D. and Spence, L., 2013. Corporate social responsibility in a global context.
Flammer, C., 2015. Does corporate social responsibility lead to superior financial performance? A regression discontinuity approach. Management Science, 61(11), pp.2549-2568.
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make corporate social responsibility work for your business. Routledge.
Hopkins, M., 2012. Corporate social responsibility and international development: Is business the solution?. Earthscan.
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Kim, Y., Park, M.S. and Wier, B., 2012. Is earnings quality associated with corporate social responsibility?. The Accounting Review, 87(3), pp.761-796.
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Tai, F.M. and Chuang, S.H., 2014. Corporate social responsibility. Ibusiness, 6(03), p.117
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