Key principles of Corporate Social Responsibility
Sustainability practices and CSR play a significant role in each and every company to attain desired goals and objectives effectively. Dahlsrud (2008), defines that CSR is the ongoing assurance by business to treat morally and contribute to fiscal and social growth while improving and enhancing the excellence of life of the labor force and their families and community in a large extent (Dahlsrud, 2008). It is analyzed that corporate social responsibility is becoming an integral and effective part of the company therefore the company needs to enhance the CSR activities and practices for managing the value of wealth creation to community (Turker, 2009). According to Carroll (2008), CSR is an organizations responsibility for the effects of its activities, practices and decisions on the environment and community as well. It is analyzed that the most ordinary and effective strategy is incorporating the principles and values of CSR and environmental sustainability in their business models. It is stated by Bowen (2013), corporate social responsibility is the capability of communities to decide or affect those decisions that directly and indirectly affect the business activities and environment. CSR is a broad term used to describe and explain a company’s efforts to enhance and improve community in some way. Furthermore, CSR is significant and vital for the companies, employees and nonprofits alike (Bowen, 2013). The corporate responsibility depends on the individuals working in the specific organizations perceiving and working towards the business case. The key principles of corporate social responsibility are discussed below.
- Esteem for human rights
- Respect for the differences of views.
- Promote diversity and there should not be any discrimination among the people.
- Make and enhance social contribution.
- Enter into e dialogue.
- Creativity, vision and self realization.
- Collaboration, cooperation and fair dealings.
- Feedback and reviews from the community.
- Positive or favorable value added.
- Long term social and economic development and expansion.
Crane and Matten (2016), defines that sustainability is a vital and significant part of the organizations to meet the needs and wants of the customers. Sustainability is a strategy to minimize or reduce negative social and environmental impacts and ensure that future generations will have sufficient resources to attain their needs and requirements. According to Benn, Edwards and Williams (2014), sustainability is a awareness that each entity is surrounded by stakeholders. Furthermore, sustainability is responsibility for the impact that the firm exerts on its atmosphere in business and social terms (Linnenluecke and Griffiths, 2010). In other words, sustainability is skilled positioning of the firm in the economic reality taking account of the economic and social challenges, threats, risks and environmental opportunities. The five principles of sustainability are elaborated below.
- Living with environmental limits
- Attaining a sustainable economy
- Encouraging and improving good governance
- Using or utilizing sound science responsibly
- Ensuring a strong, healthy and society.
It is noted that corporate social responsibility and sustainability are significant and vital tool for the company to provide wealth and value to the stakeholders. The three level of sustainability include economic dimension, ecological dimension and social dimension. Aside this, sustainability and corporate social responsibility also boost and build innovations and morale among the workers in the workplace. It also provides tax benefits and further sustainability reduces energy related costs. Sustainability improves and enhances company’s bottom line (Welford, 2016).
After the various analysis, it is noted that sustainability and corporate social responsibility are very high agenda at Nokia. The CSR practices which are operated and managed at Nokia have been detailed below.
Accessibility: It is an effective and unique factor that exercised by the company globally. The company is improving and enhancing access to communication and information by building and developing new and innovative application for the people. It also focuses on the vision, cognition, and mobility (Nokia, 2009).
Principles of Sustainability
Environment: The main and primary purpose of the company is to protect the environment in the global market. The top management and employees always focus on the environment and community to attain long term advantages in the competitive market. They also identify and focus on the energy efficiency, sustainability and substance management. The organization also encourages sustainability by using unique and innovative software and services (Nokia, 2009).
Education: It has been analyzed that Nokia tie up with various education companies, organizations and government to create ample of solutions that may have direct and significant social impact in the business. Various training and development sessions, seminars and programs are held by the company to improve and encourage the talent, knowledge and skills of the workforce in the competitive market (Aspara et al, 2011). Furthermore, the organization also spends huge amount on the training and development coaching of the workers. It will also help the firm to stand out against the competitors in the international market (Nokia, 2009).
Supply chain: Social and environmental issues are significant part of Nokia’s supplier requirements. Furthermore, the company also engages with industry partners and various NGOs to build and develop industry wide supplier assessments and requirements. The firm also makes unique and effective strategies and policies to know and identify the needs, wants and requirements of the suppliers in the competitive market. Moreover, the organization also ensures adequate and sufficient supply requirements in the international market (Nokia, 2009).
Human rights: The Company respects the UN declaration on human rights, UNO global compact principles and ILO standards. Nokia also focuses on rights and interests of the workers to provide job satisfaction and security to them. Moreover, labor condition assessment programs and sessions are also held by the company every year (Nokia, 2009).
Community involvement: The community involvement is a significant and vital part of Nokia’s worldwide corporate responsibility approach. The top management, managers and employees contribute their effort and time for the welfare of the communities (Nokia, 2009).
Energy efficiency: It is stated that Nokia tries to set various new and innovative energy efficiency attributes such as screen savers, power save modes and optimized screen brightness. Along with this, it also increases the performance, productivity and stand by energy consumption of chargers effectively and strongly (Nokia, 2009).
CSR practices help the company to develop and improve relationship with networks, suppliers and customers in the global market (Galpin and Lee Whittington, 2012). Aside this, Nokia can also attract and retain maximum number of candidates by exercising CSR activities in the workplace. It is noted that Nokia’s social responsibility strategy is dynamic and proactive (Nokia, 2009). Apart from this, Nokia’s CSR strategy and approach help it get various advantages. CSR is a significant to Nokia’ business, culture and reputation, so company will continually focus on the CSR practices and sustainability (Arvidsson, 2010). Sustainability is also an imperial part of the Nokia’s business. Sustainability also plays a crucial role in Nokia to make good relationship with clients and suppliers as well (Murugesan and Gangadharan, 2012). The main aim of the company is to create a more sustainable world through the core business of activities and connectivity. The company has grouped sustainability activities under the following priorities:
CSR Practices at Nokia
Improving and enhancing people’s lives with technology: Nokia is working towards welfare and wellbeing of people to make an effective brand image in the eyes of the customers. It focuses on the technology and resources to beat the competitors globally (Nokia, 2009).
Protect the environment: The Company works to reduce or minimum use of emission and energy. Nokia further reduces adverse environmental impact of waste, emission and resources. The organization develops eco-design system and manages materials effectively. It also increases product energy effectiveness and efficiency (Nokia, 2009).
Conduct business with integrity: The firm tackles and identifies issues related to innovative technology, data security and privacy (Rogers, 2011). It ensures whether vendors, customers and employees follow ethical, environmental and labor standards or not, if they do not follow then strict actions are taken by the company. Nokia endorses rules and principles of CSR, business ethics and governance (Nokia, 2009).
Respect people: It has been analyzed that the company provides fair and favorable working condition and culture to the workers in order to uplift the profits and outcomes (Blackburn, 2012). Top management and managers also motive the workers to improve and enhance the productivity and efficiency. Health and safety standards are maintained by the company at the workplace to increase level of satisfaction of the workers (Waniak-Michalak, Macuda and Krasodomskac, 2016). Foster employee satisfaction, expansion and engagement are done by Nokia in the workplace. People also promote diversity at the workplace to eliminate discrimination, fraud and misconduct (Nokia, 2009).
Make change happen together: Nokia also protects the rights and interests of stakeholders to increase the value and worth in the marketplace. They work towards more sustainable and effective socially and economically responsible world (Nokia, 2009).
It is analyzed that Nokia is constantly working towards the improvement and enhancement of sustainability and CSR activities (Lamberg, Laukia and Ojala, 2014). In today’s modern world, the firm is growing the business functions and procedures globally. Nokia has received awards and recognitions for dynamic CSR activities and sustainability (Nokia, 2018). The management team of the organization is constantly worked hard for sustainable development and expansion with various customers, stakeholders and partners. In today’s competitive world, the company is enabling the infrastructure for 5G and the internet of things and determining the future of technology to transform the human experience (Nokia, 2018). It is true that the company is implementing more new and innovative strategies to maintain sustainability and maximize profitability and returns in the global market. Generally, the firm focuses on the environment to reduce and analyze the risks and challenges of the market in an effective manner. It focuses on the international opportunities, resources and capabilities to strive with competitors. Corporate level and business level strategies are also initiated by Nokia to attain maximum profit and output. Porter five analysis and marketing mix strategies are also used by the firm to gain competitive benefits internationally (Nokia, 2018). The company is finding opportunities to capture the rural Indian market. Indian standard of living has also been increased to make people more trends oriented. The decision related to DJSI (Dow Jones sustainability indices) has been taken by the company at the end of 2018 to grow and explore the business globally (Nokia, 2018). Nokia is one of the world’s most ethical companies as honored by the Ethisphere institute in 2018 (Nokia, 2018). Furthermore, there are approx 393 sustainability audits implemented or initiated in supply chain to maintain dynamic and unique brand image in the market. The organization also received the QUEST forum 2017 global sustainability award in the network equipment category. Nokia also received sustainalytics ESG rating in 2017 (Nokia, 2018). Apart from this, the company is contributing to reduce and eliminate the negative effects of climate change and globalization. Long term target of reducing or eliminating emission also have been set by the company by 2030 (Nokia, 2018). Nokia also engages to protect the human rights and interests globally. In 2017, corporate community investment programs were held by Nokia to improve the lives of the people. There are around 46 long terms and short term target in sustainable business have been set by the company in 2017 (Nokia, 2018). These targets will help the company to maintain sustainability in the workplace and environment as well. In this way, the firm is trying to compete with rivalries in the international market (DuBois and Dubois, 2012).
It is noted that competitors may affect the operations and activities of Nokia negatively. Samsung group, Motorola Inc. and LG group are considered main and significant competitors for Nokia. These competitors could also affect the long term mission and vision of Nokia thus, the company needs to use innovative and advanced technologies to overcome on these rivalries in the market. It is analyzed that Nokia has the biggest distribution and selling network as compared to other competitors. It is a good and innovative opportunity for the company to increase and enhance the sale of the products (Bhamra and Lofthouse, 2016). Nokia also uses marketing mix strategy to distinguish its products from the competitors. It constantly focuses on the prices of the rivalries to maximize the sale and revenue in the marketplace. Product differentiation strategy and diversification strategy also are used by the firm to uplift and maximize results and profitability (Paloviita and Luoma-aho, 2010). Rewards and recognition are also provided to talented and potential employees in order to increase and enhance their efficiency and effectiveness. Moreover, it focuses on the culture, diversity and working environment to retain wide range of employees and customers as well (Neubauer and Lank, 2016).
- There are various recommendations given to enhance and improve the corporate social responsibility and sustainability that have been elaborated below.
- The company should focus on the global market to accomplish the long term mission and targets.
- Proper analysis of the market shall be done to determine sustainability and CSR practices.
- The perception of the customers, their caste and religious and there values shall be analyzed and studied very well to carry the business actions and operations successfully and smoothly.
- The organization should also focus on the management and corporate level strategies to earn more profitability and vice versa. The firm needs to address the strategy implementation of their organization effectively and immediately.
- It should also focus on the diversity and corporate culture to implement ample of strategies and policies in an effective way (Tengblad and Ohlsson, 2010).
- The company should establish procedures to put objectives and goals into action. Furthermore, the firm should make unique mission and objectives to reduce and improve the sustainability in the workplace.
- Apart from this, effective waste reduction shall be done by the firm to make a brand reputation in the market. By automating repetitive tasks and reducing countless paper trails, Nokia will able to cut down on waste and emission.
- Recommendations for further research are detailed below.
- Maximum employee engagement and development must be done by Nokia to enhance corporate social responsibility and sustainability practices.
- Furthermore, the company should focus on the needs, wants and expectations of the community, customers and employees to improve sustainability practices and CSR.
- The top management should discuss the significance and role of corporate social responsibility and sustainability with employees. They must conduct extensive and significant research on the concepts of corporate social responsibility and sustainability.
- The firm should keep track of all measurable costs and top management should maintain proper communication and cooperation with workers to determine and enhance their engagement towards the sustainability and corporate social responsibility (Balkau and Sonnemann, 2010).
- Moreover, Nokia shall establish favorable and pro-active relationships with other socially and ethically responsible companies.
Conclusion:
It concludes from the above mentioned analysis that corporate social responsibility and sustainability are significant and unique pillars for the company. The report also has described the definition, role, principles and significance of CSR and sustainability. The above analysis indicates that how Nokia implements CSR commitment and sustainability at the workplace. The report also discusses what kinds of benefits are taken by exercising CSR practices and sustainability. The paper shows that Nokia CSR includes legal responsibilities, ethical responsibilities and economic responsibilities. For Nokia, corporate social responsibility is not only shaping the corporate culture, enhancing and increasing efficiency and minimizing risks but also CSR has been an integral and significant part of good business sense. CSR and sustainability also help in making good and reciprocal relationship with government. The paper also explains that how CSR and sustainability help to improve and enhance brand reputation in the global market. Sustainability and CSR also helps in making favorable and attractive culture and diversity at the workplace. This strong and unique culture helps the company to carry out the business operations internationally. It is recommended that Nokia should keep an eye on the business operations and functions of competitors to stand out against the competitors.
The primary object of this literature review is to outline about the role, benefits and key principles of sustainability practices and corporate social responsibility. CSR is a good and effective way for the company to evaluate and analyze their impact on the community and stakeholders. CSR and sustainability may also affect the productivity and effectiveness of the workers. It is one of the biggest mobile telecommunication companies that provide smart phones to the customers across the world. The role and key principles of corporate social responsibility and sustainability in the context of Nokia have been explained in the task. Here is also discussion about the business operations and functions of Nokia that helps the company to increase the sales volume and operating income in the market. At the end, some suggestions have been represented to improve and encourage sustainability practices and CSR.
Nokia is a mobile telecommunication Corporation that was originated in 1865 (Nokia, 2018). The company is well known as the player of the telecommunications industry show an impressive and attractive history of adapting to market shifts. The firm develops and builds ample of mobile products of alarming similarity (Nokia, 2018). Corporate social responsibility and sustainability provide access to investment and funding opportunities and along with this, it also helps making unique and dynamic decisions in the competitive market. The company has approx six business groups with operations in China, Europe, Asia Pacific, Latin America, North America and the Middle East and Africa. Nokia employed approx 103,000 employees at the end of 2017 (Nokia, 2018). The primary motive of the company is to provide unique and dynamic smart phones to the customers at reasonable prices. The vision of Nokia is to uplift and enhance the operating income and profitability by rendering innovative products to the customers in a large extent. The firm makes policies and strategies to protect the interest of stakeholders and provide value and worth to them. Effective leadership team is appointed by the firm to provide assistance and guidance to the employees.
References:
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