Describe the role of corporate social responsibility, their benefits and steps taken by the organisation to reduce their carbon footprint.
In today’s competitive business environment, organisation are using various resources to build products that is unknowingly hampering the environment of Mother Nature. In order to balance the destructions, organisations are entering into voluntary participation in relation to social and ecological responsibilities. The study explores the business performance of IKEA and evaluates their CSR initiatives along with several points.
Corporate Social Responsibility is an immense initiative taken by different organisations of different countries with a same objective to preserve the natural resources (Crane et al. 2008). It is crucial for the companies to understand the deforestation that gives us papers. Coals which provide electricity for manufacturing. Organisation are using these resources beyond control. Therefore to balance the cause, organisations are supporting various causes to save the resources (Jo, and Harjoto, 2012). Companies are participating to provide a better environment through voluntary participations.
The term Corporate Social Responsibility is not limited to human rights, labour rights or social security, it moves beyond and helps in fighting climatic changes, developing proper sustainable management processes of natural resources and protection of consumers (Hopkins, 2012). Although the idea of CSR was brought forward by William J. B Owen in 1953, the European commission took 48 years to take a decision on the matter and applying it in their country, thereby promoting the idea of preserving natural resources.
Organisation understanding their roles and responsibilities in developing society and helping spreading awareness amongst other business organisation to strengthen the economy of the company. It is essential to understand the development of society in bringing change to the population and people of the respective countries (Hopkins, 2012). Corporate Social Responsibility plays a crucial role in boosting the economy of the country through company’s voluntary participations. CSR depends from organisation to organisation.
For example, a company with high CSR standards have certain responsibilities toward their employees, customer and general public. A company with a good CSR standards have a lower employee turnover. However, as new companies are entering various markets, there are certain challenges for companies in developing countries and developed countries. In developing countries, companies face corruption extremely followed by poverty and illiteracy. Therefore companies understand the value of CSR and help to make a better environment by improving society and people (Aguinis and Glavas, 2012).
Companies enjoy many benefits of corporate social responsibilities, but there are five main areas where the companies receive appropriate appreciation from the society. Some of the benefits of CSR are as follows,
Many organisation are improving their way of doing business to minimise their carbon footprints to ensure that they have a sustainable working environment that deals in improving the services that actually provides an advantage for the societies (Brammer et al. 2012). Apart from that, donating for the improvement of society or contributing towards a welfare cause is another aspect for the organisation to support various causes.
Many employees or job seekers prefer organisation that have CSR initiatives and a good reputation in the community. It also helps the company to retain employees thereby decreasing the employee turnover. In addition to this, companies help employees to promote their skills by helping them with appropriate courses that develops the skill of the employees. In doing so, companies have a better relation with their employees.
IKEA being a global retailer to many consumers has a specific set of goals and objectives that helps them to get a competitive edge from their competitors. The objective of the company is to “create a better life every day for the many people”. The business principle of the organisation states to provide the consumers high quality products at a low price but not at any price. IKEA believes the business concept of doing their half and expecting the consumers to do the other half to ensure profits. The business strategy of IKEA is economic designs that are attractive, high quality and reasonable price. Apart from that, the company believes in providing distinctive designs that helps them to attract more consumers.
Being the cost leader in furnishing market, the primary objective of the company is to maintain the market position as there are many companies in the market that are in the same line of business to snatch away the consumers (Brammer et al. 2007). Hence the business strategy of the company is to provide a better experience for the consumers. With the advent of e-commerce, consumers are now purchasing products online and therefore IKEA has also initiated the process of e-commerce facility for their company to increase the sales.
The organisation believes in providing the consumers products that are affordable, attractive and pocket friendly. Earlier consumers used to think furniture as a long term investment. However, with IKEA’s environment friendly strategy, the company has been able to change their business processes. The organisation has made business processes much simpler by including the idea of cost cutting solutions that ensures safety of the quality of the product (Matten and Moon, 2008). Apart from that, the idea of developing flat pack furniture also brings the leverage of minimising the manufacturing cost thereby reducing prices and eliminating transportation and storage costs respectively. The products can be self-assembled which helps the company is making low cost products. The company recycles or re-use the timber woods and manufacture products from the old resources thereby contributing to the environment (Sen and Bhattacharya, 2001). Apart from that, the international strategy of IKEA is to increase its market size, great returns on investment, improving the economic, getting a competitive advantage and so on (Byrd, 2007). The company believes in providing the consumers with products that are acceptable.
As the company uses recycled woods for their products, the company is ensuring environment friendly process to conduct business. Apart from that the organisation has also contributed in various areas such as the organisation has reduced their carbon emission through their value chain and ensuring appropriate use of resources (Carroll and Shabana, 2010). The organisation is making steady progress. In addition to this, the organisation is also ensuring appropriate forestry requirements. It is important for the company to understand in preserving the forests. Therefore the company uses recycled woods. Apart from that the company believes in using the minimum resources to ensure preservation of resources.
The organisation believes the possibility of traditional business objectives and social responsibilities can benefit many societies and cultures. The organisation is presently doing their best to reduce the impact of carbon footprints thereby making a more sustainable society. It is crucial for the organisation to determine the core problems of the issues and develop appropriate strategies to ensure the safety of natural resources (Cheng et al. 2014). In case of IKEA, the organisation believes in three areas for the improvement. They are better living conditions, welfare of the children and establishing environmental friendly projects. However, there are certain challenges that the company had to face. For example the issues in Poland has created many problems for the company.
Apart from that, Korea does not prefer organisation with such high prices. In Korea, the products are expensive as compared to European countries. In addition to this, the organisation has collaborated and cooperating with WWF to ensure forest management for the animals. The organisation has also reduced the use of water consumption. The organisation is aiming at various areas to ensure an environment friendly business operation. However, still the organisation is facing certain criticism in Asian countries and European countries for their product pricing or political disagreement (Flammer, 2015).
The organisation with the help of their operational strategies and business objectives have been able to perform adequately over the years. The problem with Poland has also calmed down and there has been a great improvement in sales in the last year. Over the years the company has improved their business and expanded to different countries. The organisation has improved their business strategies and focused in priding a better service to the consumers (Hilson, 2012). Despite the advent of e-commerce, consumers still prefers to visit the stores for unique experience. Apart from that the organisation also has a cafeteria and other services which makes the experience comfortable to the consumers. The organisation mainly targets the young people with a middle income capacity and upper level person. Apart from that IKEA also aims at business organisation to increase their sales.
Conclusion
The report constitutes various information on the role of corporate social responsibility, their benefits and steps taken by the organisation to reduce their carbon footprint. The study explores the ethical challenges, the business performance of the company over the years and discussed the problems of the company in relation to the CSR activities and their initiatives respectively.
Reference List
Books
Crane, A., Matten, D. and Spence, L.J. eds., (2008). Corporate social responsibility: Readings and cases in a global context. London: Abingdon: Routledge.
Hopkins, M., (2012). Corporate social responsibility and international development: is business the solution?.Abingdon: Earthscan
Hopkins, M., (2012). The planetary bargain: Corporate social responsibility matters. Abingdon: Routledge.
Journals
Aguinis, H. and Glavas, A., (2012). “What we know and don’t know about corporate social responsibility a review and research agenda”. Journal of management, 38(4), pp.932-968
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
Brammer, S., Millington, A. and Rayton, B., (2007). “The contribution of corporate social responsibility to organizational commitment”. The International Journal of Human Resource Management, 18(10), pp.1701-1719
Byrd, E.T., (2007). “Stakeholders in sustainable tourism development and their roles: applying stakeholder theory to sustainable tourism development”. Tourism Review, 62(2), pp.6-13.
Carroll, A.B. and Shabana, K.M., (2010). “The business case for corporate social responsibility: A review of concepts, research and practice”. International Journal of Management Reviews, 12(1), pp.85-105
Cheng, B., Ioannou, I. and Serafeim, G., (2014). “Corporate social responsibility and access to finance”. Strategic Management Journal, 35(1), pp.1-23
Farooq, O., Payaud, M., Merunka, D. and Valette-Florence, P., (2014). “The impact of corporate social responsibility on organizational commitment: Exploring multiple mediation mechanisms”. Journal of Business Ethics,125(4), pp.563-580
Flammer, C., (2015). “Does corporate social responsibility lead to superior financial performance? A regression discontinuity approach”. Management Science, 61(11), pp.2549-2568
Hilson, G., (2012). “Corporate Social Responsibility in the extractive industries: Experiences from developing countries”. Resources Policy, 37(2), pp.131-137
Jo, H. and Harjoto, M.A.,(2012). “The causal effect of corporate governance on corporate social responsibility”. Journal of business ethics, 106(1), pp.53-72
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
Luo, X. and Bhattacharya, C.B., (2006). “Corporate social responsibility, customer satisfaction, and market” value. Journal of marketing, 70(4), pp.1-18
Matten, D. and Moon, J., (2008). ““Implicit” and “explicit” CSR: a conceptual framework for a comparative understanding of corporate social responsibility”. Academy of management Review, 33(2), pp.404-424
Sen, S. and Bhattacharya, C.B., (2001). “Does doing well always lead to doing better? Consumer reactions to corporate social responsibility”. Journal of marketing Research, 38(2), pp.225-243.
Describe the role of corporate social responsibility, their benefits and steps taken by the organisation to reduce their carbon footprint.
In today’s competitive business environment, organisation are using various resources to build products that is unknowingly hampering the environment of Mother Nature. In order to balance the destructions, organisations are entering into voluntary participation in relation to social and ecological responsibilities. The study explores the business performance of IKEA and evaluates their CSR initiatives along with several points.
Corporate Social Responsibility is an immense initiative taken by different organisations of different countries with a same objective to preserve the natural resources (Crane et al. 2008). It is crucial for the companies to understand the deforestation that gives us papers. Coals which provide electricity for manufacturing. Organisation are using these resources beyond control. Therefore to balance the cause, organisations are supporting various causes to save the resources (Jo, and Harjoto, 2012). Companies are participating to provide a better environment through voluntary participations.
The term Corporate Social Responsibility is not limited to human rights, labour rights or social security, it moves beyond and helps in fighting climatic changes, developing proper sustainable management processes of natural resources and protection of consumers (Hopkins, 2012). Although the idea of CSR was brought forward by William J. B Owen in 1953, the European commission took 48 years to take a decision on the matter and applying it in their country, thereby promoting the idea of preserving natural resources.
Organisation understanding their roles and responsibilities in developing society and helping spreading awareness amongst other business organisation to strengthen the economy of the company. It is essential to understand the development of society in bringing change to the population and people of the respective countries (Hopkins, 2012). Corporate Social Responsibility plays a crucial role in boosting the economy of the country through company’s voluntary participations. CSR depends from organisation to organisation.
For example, a company with high CSR standards have certain responsibilities toward their employees, customer and general public. A company with a good CSR standards have a lower employee turnover. However, as new companies are entering various markets, there are certain challenges for companies in developing countries and developed countries. In developing countries, companies face corruption extremely followed by poverty and illiteracy. Therefore companies understand the value of CSR and help to make a better environment by improving society and people (Aguinis and Glavas, 2012).
Companies enjoy many benefits of corporate social responsibilities, but there are five main areas where the companies receive appropriate appreciation from the society. Some of the benefits of CSR are as follows,
Many organisation are improving their way of doing business to minimise their carbon footprints to ensure that they have a sustainable working environment that deals in improving the services that actually provides an advantage for the societies (Brammer et al. 2012). Apart from that, donating for the improvement of society or contributing towards a welfare cause is another aspect for the organisation to support various causes.
Many employees or job seekers prefer organisation that have CSR initiatives and a good reputation in the community. It also helps the company to retain employees thereby decreasing the employee turnover. In addition to this, companies help employees to promote their skills by helping them with appropriate courses that develops the skill of the employees. In doing so, companies have a better relation with their employees.
IKEA being a global retailer to many consumers has a specific set of goals and objectives that helps them to get a competitive edge from their competitors. The objective of the company is to “create a better life every day for the many people”. The business principle of the organisation states to provide the consumers high quality products at a low price but not at any price. IKEA believes the business concept of doing their half and expecting the consumers to do the other half to ensure profits. The business strategy of IKEA is economic designs that are attractive, high quality and reasonable price. Apart from that, the company believes in providing distinctive designs that helps them to attract more consumers.
Being the cost leader in furnishing market, the primary objective of the company is to maintain the market position as there are many companies in the market that are in the same line of business to snatch away the consumers (Brammer et al. 2007). Hence the business strategy of the company is to provide a better experience for the consumers. With the advent of e-commerce, consumers are now purchasing products online and therefore IKEA has also initiated the process of e-commerce facility for their company to increase the sales.
The organisation believes in providing the consumers products that are affordable, attractive and pocket friendly. Earlier consumers used to think furniture as a long term investment. However, with IKEA’s environment friendly strategy, the company has been able to change their business processes. The organisation has made business processes much simpler by including the idea of cost cutting solutions that ensures safety of the quality of the product (Matten and Moon, 2008). Apart from that, the idea of developing flat pack furniture also brings the leverage of minimising the manufacturing cost thereby reducing prices and eliminating transportation and storage costs respectively. The products can be self-assembled which helps the company is making low cost products. The company recycles or re-use the timber woods and manufacture products from the old resources thereby contributing to the environment (Sen and Bhattacharya, 2001). Apart from that, the international strategy of IKEA is to increase its market size, great returns on investment, improving the economic, getting a competitive advantage and so on (Byrd, 2007). The company believes in providing the consumers with products that are acceptable.
As the company uses recycled woods for their products, the company is ensuring environment friendly process to conduct business. Apart from that the organisation has also contributed in various areas such as the organisation has reduced their carbon emission through their value chain and ensuring appropriate use of resources (Carroll and Shabana, 2010). The organisation is making steady progress. In addition to this, the organisation is also ensuring appropriate forestry requirements. It is important for the company to understand in preserving the forests. Therefore the company uses recycled woods. Apart from that the company believes in using the minimum resources to ensure preservation of resources.
The organisation believes the possibility of traditional business objectives and social responsibilities can benefit many societies and cultures. The organisation is presently doing their best to reduce the impact of carbon footprints thereby making a more sustainable society. It is crucial for the organisation to determine the core problems of the issues and develop appropriate strategies to ensure the safety of natural resources (Cheng et al. 2014). In case of IKEA, the organisation believes in three areas for the improvement. They are better living conditions, welfare of the children and establishing environmental friendly projects. However, there are certain challenges that the company had to face. For example the issues in Poland has created many problems for the company.
Apart from that, Korea does not prefer organisation with such high prices. In Korea, the products are expensive as compared to European countries. In addition to this, the organisation has collaborated and cooperating with WWF to ensure forest management for the animals. The organisation has also reduced the use of water consumption. The organisation is aiming at various areas to ensure an environment friendly business operation. However, still the organisation is facing certain criticism in Asian countries and European countries for their product pricing or political disagreement (Flammer, 2015).
The organisation with the help of their operational strategies and business objectives have been able to perform adequately over the years. The problem with Poland has also calmed down and there has been a great improvement in sales in the last year. Over the years the company has improved their business and expanded to different countries. The organisation has improved their business strategies and focused in priding a better service to the consumers (Hilson, 2012). Despite the advent of e-commerce, consumers still prefers to visit the stores for unique experience. Apart from that the organisation also has a cafeteria and other services which makes the experience comfortable to the consumers. The organisation mainly targets the young people with a middle income capacity and upper level person. Apart from that IKEA also aims at business organisation to increase their sales.
Conclusion
The report constitutes various information on the role of corporate social responsibility, their benefits and steps taken by the organisation to reduce their carbon footprint. The study explores the ethical challenges, the business performance of the company over the years and discussed the problems of the company in relation to the CSR activities and their initiatives respectively.
Reference List
Books
Crane, A., Matten, D. and Spence, L.J. eds., (2008). Corporate social responsibility: Readings and cases in a global context. London: Abingdon: Routledge.
Hopkins, M., (2012). Corporate social responsibility and international development: is business the solution?.Abingdon: Earthscan
Hopkins, M., (2012). The planetary bargain: Corporate social responsibility matters. Abingdon: Routledge.
Journals
Aguinis, H. and Glavas, A., (2012). “What we know and don’t know about corporate social responsibility a review and research agenda”. Journal of management, 38(4), pp.932-968
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
Brammer, S., Millington, A. and Rayton, B., (2007). “The contribution of corporate social responsibility to organizational commitment”. The International Journal of Human Resource Management, 18(10), pp.1701-1719
Byrd, E.T., (2007). “Stakeholders in sustainable tourism development and their roles: applying stakeholder theory to sustainable tourism development”. Tourism Review, 62(2), pp.6-13.
Carroll, A.B. and Shabana, K.M., (2010). “The business case for corporate social responsibility: A review of concepts, research and practice”. International Journal of Management Reviews, 12(1), pp.85-105
Cheng, B., Ioannou, I. and Serafeim, G., (2014). “Corporate social responsibility and access to finance”. Strategic Management Journal, 35(1), pp.1-23
Farooq, O., Payaud, M., Merunka, D. and Valette-Florence, P., (2014). “The impact of corporate social responsibility on organizational commitment: Exploring multiple mediation mechanisms”. Journal of Business Ethics,125(4), pp.563-580
Flammer, C., (2015). “Does corporate social responsibility lead to superior financial performance? A regression discontinuity approach”. Management Science, 61(11), pp.2549-2568
Hilson, G., (2012). “Corporate Social Responsibility in the extractive industries: Experiences from developing countries”. Resources Policy, 37(2), pp.131-137
Jo, H. and Harjoto, M.A.,(2012). “The causal effect of corporate governance on corporate social responsibility”. Journal of business ethics, 106(1), pp.53-72
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
Luo, X. and Bhattacharya, C.B., (2006). “Corporate social responsibility, customer satisfaction, and market” value. Journal of marketing, 70(4), pp.1-18
Matten, D. and Moon, J., (2008). ““Implicit” and “explicit” CSR: a conceptual framework for a comparative understanding of corporate social responsibility”. Academy of management Review, 33(2), pp.404-424
Sen, S. and Bhattacharya, C.B., (2001). “Does doing well always lead to doing better? Consumer reactions to corporate social responsibility”. Journal of marketing Research, 38(2), pp.225-243.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download