Conceptualizing the Behavioral Barriers to CSR and CS in Organizations
Corporate social responsibility (CSR) has become of the standard business practice of this era. It also helps the organisation to be competitive in the industry considering various social, ethical and environmental aspects in respect with core strategies.
CSR can be defined from various perspectives. (Ahamad, Nisar and Al-Amri 2013) defined corporate social responsibility an integrated practice of socially beneficial programme into organisation business model and culture. CSR is implemented by organisation for long term gaining and thus becomes more efficient in the industry.
In the model of CSR, there are four levels considering “Pyramid of Corporate Social Responsibility”. These are described as below –
Source: (Joo, Moon & Choi 2016)
In the first level of this pyramid, it defined necessary economic responsibilities that are preferred as a primary responsibility of an organisation. It is very essential for an organisation to earn adequate amount of profit so as to fulfil necessary functions such a paying of employee in terms of wages, the amount paid to suppliers for their raw materials and so on. Hence, if a corporation did not earn adequate profit, it will be difficult to survive in the industry.
In second level of pyramid, all organisation need to obey the law related to various regulations such as employee wage act, working environment law, food safety law, etc. (Maas & Reniers 2014). They need to function in the legal framework and this is what required by the global stakeholders.
Ethical responsibilities come under third level which helps the organisation to be ethical in their operations and responsibilities. Ethical principles are applied in various fields of organisation operations such as earning profit, competing with rivals, considering stakeholders and so on.
The top-notch of this pyramid includes Philanthropic Responsibilities, which includes various aspects such as CR, sustainable development, environmental protection, etc. It is responsibility of every organisation to give back to the society as they take from in form of resources and materials. On contradictory side, many corporations were also being condemned for their portion in pollution, exploitation of natural resources and their part in pollution (Udo & Jansson 2009).
This four-level Pyramid is considered as set standards that drive organisation to acknowledge necessary principles of corporate social responsibility and define practices to gain respective objectives.
With the change in time and era, the societal aspects are changing tremendously and this impact many manufacturing or service based industry. In addition, a future of business cannot be perceived positive without the environment of political stability (Wuliji, Carter & Bates 2009). To sell their products and services in the market, an organisation needs approval of society in both emerging and developed countries. For example, in Africa, when companies raise the price of AIDS drugs, many people attack pharmaceutical firms.
A Moderated Mediation Model of CSR and Organizational Attractiveness among Job Applicants
In this dynamic environment, all corporations are operating into new platform with consideration of various aspects related to price, employee, industry and so on. These companies need to fill the gap between CR deficit and sufficiency. For example, in 2004, 8% of their customers stop shopping from Wal-Mart, as the company are not fulfilling CR responsibilities.
In addition, IBM survey also states that there is continuously rising in the expectations of people and this makes organisation executive focuses on individual needs and respond towards those expectations (Konrad 2006). Other than this, with advent of technology, there is also transparency of all information within and outside the organisation. The business environment becomes highly scrutinized and this can make huge loss for those organisations who seem to be deficit with CR responsibilities and strategies.
Highly competitive business environment stimulates the business to function with pro-active approaches (Darnall, Henriques & Sadorsky 2010). Earlier, many organisation control the communications of their businesses through press releases however, now they admit various additional elements linked to the customers.
This brings more reliability as business firms are strengthening a sense of community by holding authentic and transparent conservatives with the help of media.
Business organisations can gain out various benefits with implementation of CR approaches and strategies in association with their functions. For example, considering strategic perspectives, Wal-Mart is using cost-cutting mantra, which infers the value from CR. For any organisation, they can acquire sustainable benefits by recycling strategies, low energy use and further enhancements in the supply chain. As Wal-Mart was able to successfully implement this approach, also help them with lowering of prices of the products and lure more number of customers. However, scale and nature of benefits differ from organisation to organisation.
It is a vital part of corporate strategy to manage their reputational strategy. It is also said by Rupert Murdoch, that – “Our status is more significant than the last hundred million dollars”. The organisation goodwill can be reduced with many possible corruption outrages and environment fates and this leads to gain attention of several unwelcomed parties like government, press and courts.
Hence, there is a need for development of positive culture within an enterprise drive to be basis of any genuine CR policy assist in opposing these kinds of risks.
In this competitive marketplace, organisation are also delivering other aspects rather than selling just of products (Piercy 2010). Based on of distinct value of ethics, many organisations are able to accomplish CSR responsibilities that lead to more customer loyalty.
Development of a CSR model for practice Connecting five inherent areas of sustainable business
Major brands like 3M and Intel has developed their culture as per the philosophies of moral values. Brand differentiation help business firms to implement pro-active methodologies in every changing dynamic and competitive environment.
Organisation can also retain and recruit competent employees with the help of effective CR plans as it will create a positive reputation in the workforce and this will automatically form the CR strategy (Matongolo, Kasekende & Mafabi 2018). There will be decrease in costs as well as higher productivity with strengthening of brand image and promotion of trust among staffs.
With execution of these CR strategies, it is also important for organisation to consider that these strategies are effectively conveyed to the employees so as to maximise the profit and return. In 2010, several types of research argue that 53% of personnel were not fully alert of any of the practices that an enterprise undertakes.
There is fierce competition among organisations in an industry and a firm is required to meet the needs of various stakeholders so as to establish their brand at distinct position in the market. It is also linked from CR perspectives.
A business organisation needs to acknowledge the CR significance in terms of stakeholders’ outlook (Pasricha, Singh & Verma, 2018). Conferring to yearly business reputation survey, if unemployed, 86 per cent of American females express that they would not join a corporation with a depraved reputation, paralleled to simply 67 per cent of American males. In terms of employees perception, they are more likely to work with strong reputed brand as it will provide them favourable and satisfying working environment.
An enterprise can be motivated with the customer expectations to consider social procedures in coordination with the marketing activities (Du Preez, Bendixen & Abratt 2017). In domain of ethical and philanthropic, the consumer holds high expectations in relation to CSR practices. It also includes high community involvement with self-transcendent principles.
These aspects need to give utmost importance in scope of association between CSR expectations, other dimensions i.e. philanthropic and ethical, etc.
Socially Responsible Investing (SRI) is well-defined as ethical or “green” investing. In yearly meetings, the shareholder can ask for the management about report related to social and environmental performance as it represents their rights.
In addition, the idea of SRI can be promoted in three methods i.e. advocacy of shareholders, community investing and investment in government organisation and business firms. From the last few years, there is an increment in SRI investing and which has extended to $3.74 trillion in overall managed assets.
Ethical Leadership Organic Organizational Cultures and Corporate Social Responsibility
In respect with any business firm, employees are vital part of any sort of organisation practices and plans. For a corporation, they are also termed as brand ambassador. Skilled employees and workforce in a business corporation help in attaining and fulfilling of various CR practices. In addition, employees are also called to be as primary spokespeople for a firm and management increase the morale and reduce turnover by putting personnel in centre of their strategies and objectives.
For instance, in IBM various brainstorming session are being organised on some particular occasion that defined various practices to make the employee engage with CR issues.
Corporate responsibility is not a new notion. It is just that the importance of this approach is being driven by organisations due to competitive and other factors. Several certifications standards are instigated for going green by various organisations.
If applied positively, the business performance will be increased in many sorts of extents. CSR is taking on a deeper hue of green and hovering awareness amid community that may perhaps decode into improved sales or votes.
An organisation can ensure sustainability into business culture with communication of their CR activities (Garavan et al. 2010). This is a vital aspect to make the employees aware of various CR programmes and activities and also ensure transparency by communicating to shareholders about the corporate objectives that need to be accomplished in future.
This will help the organisation to meet with future challenges and also ensure best investment in future.
Conclusion
Corporate social responsibility (CSR) embrace businesses accountability towards all the stakeholders of company. Corporate social responsibility is the best thing that was employed into companies both small and large and it creates benefits for all.
CSR can also be used as a defensive policy to help organisation to compete fearlessly in the competitive environment.
References
Ahamad Nalband, Nisar & Al-Amri, Mohammed S 2013, ‘Corporate social responsibility’, Competitiveness Review: An International Business Journal, vol. 23, no. 3, pp. 284–295.
Darnall, Nicole, Henriques, Irene & Sadorsky, Perry 2010, ‘Adopting Proactive Environmental Strategy: The Influence of Stakeholders and Firm Size’, Journal of Management Studies, vol. 47, no. 6, pp. 1072–1094.
Du Preez, Rose, Bendixen, Michael & Abratt, Russell 2017, ‘The behavioral consequences of internal brand management among frontline employees’, The Journal of Product and Brand Management, vol. 26, no. 3, pp. 251–261.
Garavan, Thomas N, Heraty, Noreen, Rock, Andrew & Dalton, Eugene 2010, ‘Conceptualizing the Behavioral Barriers to CSR and CS in Organizations: A Typology of HRD Interventions’, Advances in Developing Human Resources, vol. 12, no. 5, pp. 587–613.
Joo, Young Ran, Moon, Hyoung Koo & Choi, Byoung Kwon 2016, ‘A moderated mediation model of CSR and organizational attractiveness among job applicants’, Management Decision, vol. 54, no. 6, pp. 1269–1293.
Konrad, Kornelia 2006, ‘The social dynamics of expectations: The interaction of collective and actor-specific expectations on electronic commerce and interactive television’, Technology Analysis & Strategic Management, vol. 18, no. 3-4, pp. 429–444.
Maas, S. & Reniers, G. 2014, ‘Development of a CSR model for practice: Connecting five inherent areas of sustainable business’, Journal of Cleaner Production, vol. 64, pp. 104–114.
Matongolo, Asuman, Kasekende, Francis & Mafabi, Sam 2018, ‘Employer branding and talent retention: perceptions of employees in higher education institutions in Uganda’, Industrial and Commercial Training, vol. 50, no. 5, pp. 217–233.
Pasricha, Palvi, Singh, Bindu & Verma, Pratibha 2018, ‘Ethical Leadership, Organic Organizational Cultures and Corporate Social Responsibility: An Empirical Study in Social Enterprises’, Journal of Business Ethics, vol. 151, no. 4, pp. 941–958.
Piercy, Nigel F 2010, ‘Evolution of strategic sales organizations in business-to-business marketing’, Journal of Business & Industrial Marketing, vol. 25, no. 5, pp. 349–359.
Udo, Victor E. & Jansson, Peter Mark 2009, ‘Bridging the gaps for global sustainable development: A quantitative analysis’, Journal of Environmental Management, vol. 90, no. 12, pp. 3700–3707.
Wuliji, Tana, Carter, Sarah & Bates, Ian 2009, ‘Migration as a form of workforce attrition: a nine-country study of pharmacists’, Human Resources for Health, vol. 7, no. 1, pp. 1–10.
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