The Role Of Corporate Governance And Social Responsibility In Business Organizations

Question 1

Evaluation frameworks are designed to facilitate a scientific and accurate analytical assessment that will indicate the progress along with the need for improvement in simplified and easy to understand format. The requirement of this question is to design an interactive evaluation framework that can assess the key roles and responsibilities of the directorial board of the corporate organization (Jiraporn et al. 2014). An efficient evaluation framework will not only allow the assessment of the competence and efficiency of the directorial board of a business organisation but will also provide a guideline that can be aspiration for that business organisation to achieve excellence in the near future (Cheng, Ioannou and Serafeim 2014). A simplified and integrative example of a competent evaluation framework can be as follows:

Taking the example of a business organisation belonging to the Australian context in need for evaluation Framework for a mishap on the part of directorial board costing the entire organisation a pretty penny can be the recent scandals with milk shortage in Woolsworth. The last few years have witnessed the milk shortage and exorbitant hike in milk pricing in the Australian retail giant Woolsworth and its competitors Coles have received a raised eye from business analytical sectors and economic critics all over the world (theaustralian.com.au 2017). It has to be understood, when a business organisation faces a meltdown it is the responsibility of the directorial hierarchy to efficiently handle the operational mishap without allowing the customers to be affected for the shortage situation. In this case however the directorial authority of the Aussie retail giant failed to assess the situation using competence and effective administrational management and the price is paid by the loyal customers both literally and figuratively. Here the evaluation framework put forth above can be utilised to ensure efficiency and excellence in the corporate decision making and strategic risk management and the director report of the business organisation (theaustralian.com.au 2017). The competency factors listed in the above curated evaluation framework like risk management capacity, persuasion, motivation, assertive communication and strategic management, can be extremely beneficial in not only assessing the efficiency of the director report but also serving as an excellent guidance or objective to achieve in the near future to avoid such professional misconduct (Kelly et al. 2016).

Every business organization has a specific position in the human society, and as the business processes of the organizations are heavily influenced by human needs and requirements, every business organization has a social responsibility to fulfil. Hence the Social Responsibility that a business corporation holds associated with the business operational processes and its impact on all the external and internal stakeholders can be called the corporate social responsibility of that particular business organisation (Korschun, Bhattacharya and Swain 2014). In this context it has to be mentioned that every business operational tactics and strategies have a direct or indirect impact on the society and its growth and prosperity. Hence there is a distinct social position that every business corporation holds based on its activities and its correlation with societal and environmental sustainability. Similarly every business organisation needs to uphold the societal position to sustain in the cut throat competition of the current age. Many authors have discussed importance of withholding the social position for a business organisation to sustain the Rough types of competition and the dynamic economy. Every business organisation must retain its social position otherwise that particular social position can be captured by a competitive organisation. Therefore there is need for a competent and efficient corporate social responsibility for the organisation to retain competency and sustainable efficiency fulfilling the social responsibility effectively (Ngacho and Das 2014).

Question 2

Corporate social responsibility can be defined as the code of self regulation that can be integrated into the business administrative context. Pertaining an active corporate social responsibility allows a business organisation to have a strategic self regulatory plan that ensures compliance to the laws and legislations, societal and environmental ethics, and national and international norms. In this context it must be mentioned that every corporate sector today is dealing with immense level of competition, a single slip in the way can be the contributing factor dragging down the success and future prosperity of the business organisation under consideration (Rienties et al. 2016). Corporate social responsibility comes as a boon in this situation. It has to be understood that are an effective corporate social responsibility is not just a means for self regulation in a business organisation nowadays, instead having a unique, socially and environmentally considerate corporate social responsibility can be an effective way to contribute towards greater societal and environmental good and establish a glowing social position for itself. Furthermore it also needs to be considered that the mass is now more aware of the environmental and social deterioration that we are going through than ever before, more and more sectors of our society is now inclined towards goods and services that are environmental friendly and contribute to the sustainable usage of resources. In a situation like this having a socially responsible frontier for a business organisation will boost  both the reputation and marketing in the future (Singh 2016).

However it is also established knowledge that having an unshakable corporate social responsibility that can attract the undivided attention of the customer base is a major responsibility of the board of directors and managerial hierarchy.  There can be many instances where having an effective and influential corporate social responsibility can save the day for a corporate organisation by the means of managerial and directorial intelligence and foresight. For example for a retail giant alike the one selected for this assignment, there can be a number of competitors waiting in the wings to capture the social position and the customer base lost by just a single mistake. a significant CSR activity in this situation showcasing the greater good the back of organisation is painstakingly doing for the welfare of the society and our environment (Supanti, Butcher and Fredline 2015). Hence corporate social responsibility and its effective and intelligent use can be an excellent tool for restoring the reputation and establishing a stable footing in this dynamic economy for any corporate organisation.

Therefore it can be said that with a few strategic steps like complying to the environmental and societal legislations, complying to ethical disposal and resource utilisation plans, and regular donations to help the underprivileged sectors of our society can be excellent strategies to improve the competency factors and reputation of a business organisation by the intelligent use of corporate social responsibility (Tuyen 2014).

References:

Cha, M.K., Yi, Y. and Bagozzi, R.P., 2016. Effects of Customer Participation in Corporate Social Responsibility (CSR) Programs on the CSR-Brand Fit and Brand Loyalty. Cornell Hospitality Quarterly, 57(3), pp.235-249.

Cheng, B., Ioannou, I. and Serafeim, G., 2014. Corporate social responsibility and access to finance. Strategic Management Journal, 35(1), pp.1-23.

Jiraporn, P., Jiraporn, N., Boeprasert, A. and Chang, K., 2014. Does corporate social responsibility (CSR) improve credit ratings? Evidence from geographic identification. Financial Management, 43(3), pp.505-531.

Kelly, K., Harrington, L., Matos, P., Turner, B., and Johnson, C. 2016. Creating a Culture of Safety Around Bar-Code Medication Administration: An Evidence-Based Evaluation Framework. Journal of Nursing Administration,46(1), 30-37.

Korschun, D., Bhattacharya, C.B. and Swain, S.D., 2014. Corporate social responsibility, customer orientation, and the job performance of frontline employees. Journal of Marketing, 78(3), pp.20-37.

Ngacho, C., and Das, D. 2014. A performance evaluation framework of development projects: An empirical study of Constituency Development Fund (CDF) construction projects in Kenya. International Journal of Project Management, 32(3), 492-507.

Nikolaou, I. E., Evangelinos, K. I., and Allan, S. 2013. A reverse logistics social responsibility evaluation framework based on the triple bottom line approach. Journal of Cleaner Production, 56, 173-184.

Rienties, B., Boroowa, A., Cross, S., Kubiak, C., Mayles, K., and Murphy, S. 2016. Analytics4Action evaluation framework: A review of evidence-based learning analytics interventions at the Open University UK. Journal of Interactive Media in Education, 2016(1).

Singh, B.J.R., 2016. Corporate social responsibility in India. International Journal of Higher Education Research & Development, 1(1).

Supanti, D., Butcher, K. and Fredline, L., 2015. Enhancing the employer-employee relationship through corporate social responsibility (CSR) engagement. International Journal of Contemporary Hospitality Management,27(7), pp.1479-1498.

theaustralian.com.au (2017). www.theaustralian.com.au. [online] Available at: https://www.theaustralian.com.au/…/woolworths-milk…/6dd0214a084345c2b47974458a4ac.. [Accessed 23 Jun. 2017].

Tuyen, L., 2014. Corporate Social Responsibility (CSR).

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