Tag: Corporate Social Responsibility

Importance of Corporate Social Responsibility Courses

The debate about social responsibility has existed for decades now. Sockell refers to corporate social responsibility (CSR) as the responsible business activities regarding societal objectives that comprise philanthropic, economic, ethical, or legal business perspectives that super cedes what any regulations or law may need (n.d.). Corporate social responsibility is an imperative word gaining momentum for corporations and many business schools. CSR is not widely integrated into most business schools’ curriculum irrespective of increased consideration in the modern business world. However, it is time when business schools’ curriculum incorporated corporate social responsibility in the student’s studies. This is because governments and business leaders are increasingly recognizing social changes and environmental issues as the biggest threat to business survival.

Read also Volkswagen Corporate Social Responsibility

            Good corporate social responsibility usually means profitable economic growth for organizations. Consequentially, it becomes easier for companies to pull investments since the firm is reducing perceived threats by being more transparent. Business schools should prepare MBAs for this reality, and many business schools across the world have begun to react to this increased involvement with social challenges. The philosophy of introducing courses such as Mindful Manager, Responsible Leadership and Management and Ethics allows students to perceive responsible business practices from different angles. The students can become effective in personal, environmental, global, and organizational management. The focus of these schools is producing managers and leaders who behave, think, and act responsibly. Moreover, these students will put the interest of every stakeholder as a priority.

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            Modern students want to work in companies that impact the community and show high ethical standards with a perfect reputation. Therefore, Business schools play a significant role in developing tomorrow’s employees by enriching students’ potential to discover and apply values. Today, it is a norm that every business must know its obligation to maintain society and the environment. It is up to the business institutions to implement new ways of imparting contagious thinking in businesses. When business schools adopt modern corporate social responsibility strategies into their curriculum, they help students set a basis of social responsibility, values, and ethics constructed around self-discovery. With increased access to the internet, students keep a log of bad and good corporate traits they see through social media or hear about in class. This is crucial as it adds to all the subjects the students study for MBAs.

Read also Is Pursuing a Policy of Corporate Social Responsibility a Useful Part of a Company’s Competitive Strategy

Business schools should integrate corporate social responsibility into their curriculum as the goal will be to make ethics a primary element in the teaching and conversation in classes (Sockell n.d.). This process should begin by identifying professors who subscribe to the ideas that social responsibility, values, and ethics are fundamental topics in students’ education and having them approved to become advisers and ambassadors of ethics in the business world. Business schools are the appropriate vehicles that produce values-oriented leaders – advocators of social responsibility. The accomplishment of these aspects could be instrumental in changing the conversation about corporate social responsibility from negative to positive. Without the acceptance and implementation of such policies and practices, the world would be surprised with the increase in audacity of corporate malfeasance in the coming years. We will all be astonished by the effect on innocent individuals, the public trust frayed, and the jobs lost.

Volkswagen Corporate Social Responsibility

The Volkswagen emission scandal that occurred some years ago was an illustration of some of the challenges and failures facing the concept of Corporate Social Responsibility (CSR) in modern organizations. Notably, in modern global environment, the organizations have had a significant role to play to ensure they influence economic, social, and environmental aspects in society in a positive way. One of the significant approaches that the majority of companies have integrated into their operations to ensure they positively affect the society is the adoption of various corporate social responsibility techniques. CSR is a concept that allows the organizations to consider the interests of society by taking responsibility as well as engaging various stakeholders and the environment. The activities fall beyond the legal liability of a company, as they represent the willingness to engage in voluntary activities that include additional measures that improve the quality of life of various stakeholders. In this regard, the CSR concept has become one of the main approaches through which the organizations give back to society and improve their brand name.

Since there are no single universally accepted ways how CSR should be undertaken, most modern entities adjust their various CSR practices based on their views, beliefs, and resources. According to Klein, in an article in the Forbes magazine, organizations have the potential to maximize their CSR investments and make them successful through the integration of five interrelated criteria in their day-to-day operations. To begin with, the companies must ensure they adopt a business-based social purpose that directly reflects their operations and activities to ensure effective CSR programs. Apart from that, CSR practices should be based on a theory of change to ensure they drive measurable social change in society (Klein). Additionally, the entities should provide quality and depth of information to stakeholders regarding their CSR practices. A successful and effective CSR model should focus on a concentered effort of one objective at a time. Lastly, Klein asserts that organizations have a duty to cooperate with experts to ensure they establish a high degree of credulity when engaging in CSR practices. Subsequently, the management should be willing to incorporate such criteria in their CSR models to guarantee they are successful as well as avoid shortcomings like those witnessed in the Volkswagen CSR models.

Read also A Multinational Corporation Has No Moral Or Social Responsibility To Engage In Corporate Social Responsibility (CSR) Programs

Since the beginning of this century, most CSR practices have become integrated within business strategies; thus, most of them are more about society and stakeholders than public relations (PR). Over the past decades, the success of various companies can somehow be attributed to their effective CSR models. Essentially, the organizations with successful CSR model tend to comply with the law, standards of ethics, and also observe the national and international norms. Some of the companies that have integrated effective CSR practices in their day-to-day operations in recent years include Lego, Apple, Microsoft, Samsung, Adidas, Novo Nordisk, Intel, Robert Bosch, Cisco Systems, Netflix, and Airbus among many others. Notably, most organizations usually design their various CSR practices based on the types of activities that take place in their operations. Thus, most companies have different CSR approaches, but all of them are aimed at positively affecting society. In recent past, the companies have not only created strong brand names through CSR but have also been able to build a strong bond with consumers and other stakeholders in the market.

Read also McDonald’s Corporate Social Responsibility Analysis – Business Ethics

Although CRS practices have been an essential component in the business world, some of the activities in organizations have highlighted the weaknesses and failures of the approach. Over the past years, the world has witnessed several incidents that have illustrated how organizations tend to exploit the concept of CSR. Notably, Nike’s sweatshop crisis in the 1990s, Wal-Mart’s ethical controversies in the mid-2000s, and recently, Volkswagen’s emissions scandal in 2015 demonstrated some of the weakness and failures of CSR practices (Dans). Notably, before the emergence of the emissions scandal, the manufacturer had just been named as the 2015 Automotive Industry Leader in its Dow Jones Sustainability Index (Dans).

Read also Ethics, Corporate Social Responsibility and Sustainability – BUACC5934 Financial Accounting

One of the reasons the scandal is attributed to CSR failure is due to the fact that Volkswagen was one of the entities with the leading CSR practices during the time. The emergence of the scandal was an indication that those in charge of the CSR model were not doing their job or had colluded with the management to engage in PR exercises. Based on the emissions scandal in 2015, it was apparent that Volkswagen’s CSR practices were mere marketing exercises rather than activities aimed at benefitting shareholders and society as a whole (Dans). For instance, Volkswagen did not care that its cars were emitting poisonous gas to the environment as long as doing so was enough to earn them the title “world’s automotive industry leader.” One of the current problems with CSR practices is that companies are given the freedom to self-regulate themselves. In this regard, some of them have established CSR practices that are just PR exercises without taking into consideration the well-being of their stakeholders. Subsequently, the CSR failures of Volkswagen are an indication that much needs to be done to ensure those mandated with such practices are held responsible in the event they are discovered to have certain weaknesses or failures.

Read also Is Pursuing a Policy of Corporate Social Responsibility a Useful Part of a Company’s Competitive Strategy

Volkswagen’s emissions scandal in 2015 can be attributed to several factors that have become common among most modern CSR practices. The scandal took place since Volkswagen’s CSR program did not meet the criterion of achieving clear change as described by Klein. To begin with, the scandal emerged when the manufacturer decided to invest in production and sale of diesel cars that were ecological friendly in the U.S. The sale of the cars was supported by a market campaign that put emphasis on low emissions. However, it was later discovered that Volkswagen cars had software in the engine that compromised the results (Dans). Subsequently, Volkswagen did admit engaging in fraudulent emissions tests in the U.S.

Read also Discussion : Extent to Which A Company Embraces Corporate Social Responsibility

As a result, all the CSR practices Volkswagen had been involved in concerning the cars were discovered to be one of the ways of deceiving authorities and other stakeholders like customers. In this regard, Volkswagen’s CSR practices were focused on improving their sales as well as reputation rather than achieving actual change and positive impact for the society. Based on the scandal, it is apparent that some of the modern CSR practices in organizations have shifted from affecting the community to a method of aggressive marketing.  Notably, the issue with some of CSR practices in some organizations is that they are based on goals and aspirations and not clear and tangible results (Dumalaon). Therefore, such factors have led to failures of CSR practices, as some of the organizations do not design them based on the intended purposes since CSR has become one of the ways of achieving organizational goals and not positively affecting the society.

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In modern global environment, the organizations have had a significant role to play to ensure they influence economic, social, and environmental aspects in society in a positive way through the use of CSR programs. CSR is a concept that considers the interests of the community by taking responsibility as well as engaging in activities that have positive impacts on the various stakeholders in society and the environment. In recent years, the success of several organizations is attributed to their effective CSR programs. However, some of the activities by other entities have highlighted the weaknesses and failures of the CSR approach. Some of the weaknesses and failures of CSR are illustrated by Volkswagen’s emissions scandal of 2015. It was discovered that the manufacturer had engaged in CSR programs aimed at marketing its cars as opposed to helping society. In this regard, organizations should be willing to design their CSR programs in a way that positively affects the various stakeholders in society.

Corporate Social Responsibility and Ethics at Speedy Hire Plc

Introduction

Corporate social responsibility and ethics look at actions that companies take towards embracing responsibility and encourage positive impact for the company and the society; this is realized when companies can engage with employees, communities, environment, the government, and the consumers. With ethics, the company sets various operational strategies to ensure implementation of required practices in organizational and employee development. The following essay looks at the corporate social responsibility and ethical activities as practiced by Speedy Hire Plc (SpeedyPlc, 2018). This is a limited company based in the United Kingdom specializing in the hiring and contracting business. 

Read also Ethics, Corporate Social Responsibility and Sustainability – BUACC5934 Financial Accounting

Corporate social responsibility and ethics at Speedy Hire Plc.

The corporate social responsibility and ethics for speedy hire Plc. is based on its mission which motivates employees and stakeholders in coming up with services that bring about positive reputation and encourage the integration of their services from the provider to the consumer and the community (SpeedyPlc, 2018); this has been realized through various strategies in service delivery. Their approaches are also long-term and ensure that the company has positioned itself in the international markets as a service provider through its 36 years old experience. When looking at the corporate social responsibility and ethics of speedy hire Plc. it can be discussed in different areas as follows.

Read also A Multinational Corporation Has No Moral Or Social Responsibility To Engage In Corporate Social Responsibility (CSR) Programs

In the political environment, the company’s board is made up of a non-partisan, voluntary political action team. The company is legally registered with the responsible authority. In their daily operation, the company also provides its employees with the freedom to create interest groups. In these groups, employees can come up with various support projects that ensure their welfare is met apart from those provided by the company (Jenkins & Yakovleva, 2009). Concerning the community, the company also engages in social responsibility programs like rehabilitation of parks and sites. With this, the company has been given a positive appeal by the citizens. Its operations are also transparent meaning everything they do is compliant with the laws of the country.

Read also Is Pursuing a Policy of Corporate Social Responsibility a Useful Part of a Company’s Competitive Strategy

In the social perspective Speed Hire Plc. ensures that its employees work in an all-inclusive environment. This makes them free to share issues, they are free and can support the leader they want without fear of being fired. Also, this is expressed in the way information is shared in the organization. The company has enacted boards, send newsletters, email and Whatsapp group alerts. They continuously conduct working group meetings where managers can meet employees and share issues that are trending in the company. By doing this, the company ensures synergy among its employees and the board. Being open makes employees feel special thus less employee turnover (Georgen, 2009). While experienced employees continue to provide the company with excellent services, its awareness and reputation are also boosted. Other ethical aspects of the company operations are where all employees are required to follow written practices and policies (SpeedyPlc, 2018). This is made possible when the company understands the uniqueness of each employee, meaning they may all come up with different ideas on how to operate the company.

Having a set policy ensures uniformity in approaching managerial and administrative issues thus harmony is increased. Employees are also given time to take care of family and personal matters through days off, insurance plans, leave, retirement plans, performance appraisals, wellness programs and resources for their departments.  Environmental, Speedy Hire Plc.  Also, the company has involved itself in various environmental conservation activities. This is because most of its operations in one way or the other often affect the environment, for example, cutting down of ecological systems, road blockage, noise pollution during on-site construction and resident evacuations (Larcker, Tayan, & Gutman, 2013). This will present negative regard for the company meaning that its corporate social responsibility ensures that invests more in things that matter to the society like education scholarships, employing the locals and reconstruction of sites. 

On the legal grounds, the company has invested a lot in strategic planning; this includes factors like safety and health of their employees and the community. All employees are subjected to machinery training and are insured by the company in case of accidents. Waste control is also essential as it ensures reduction of bad air and disorganization in the community.  The company also has a code of policies about the UK Cadbury report of 1992 (Larcker, Tayan, & Gutman, 2013). The report made recommendations on how companies need to implement corporate governance and ensure that they provide their employees and stakeholders with directions on which the company must head.

Conclusion

In conclusion, Speedy Hire Plc. is among the top rated companies in the united kingdom. When it comes to corporate social responsibility and ethics, the company has executed it so well through proper regulation and monitoring of every aspect of its operations.  Other issues that have enabled the company to do well include training needs, capacity building for employees and establishing a common organizational culture. With these aspects, employees can work more responsibly, become productive while the company meets ethical standards for each of their operations.

A Multinational Corporation Has No Moral Or Social Responsibility To Engage In Corporate Social Responsibility (CSR) Programs

Persuasive Essay

Corporate Social Responsibility (CSR) is becoming increasingly very important in the business world today. Companies should not solely focus on profit making but as well mind the stakeholder interest as well as emphasize on other areas.

Corporate social responsibility (CSR) which is as well referred to as corporate citizenship, corporate science or responsible business is a type of corporate self-regulation which is integrated into a particular business model (Lindgreen, & Swaen, 2010). This policy is a self-regulatory mechanism which is used by businesses to monitor and ensure extremely active compliance with the ethical standards, the law, as well as both the national and the international norms. With some of the models, when a firm implements the CSR, it at most times goes beyond the compliance with the rules and regulations and engages in the actions that lead to further social good and which is beyond the firm’s interest but most importantly, these actions are required by law. The main aim of this is to increase the long-term profits of the company as well as the trust from their shareholdersthrough positive public relations as well as the high standards of ethics so as to reduce the legal and business risks by ensuring they take responsibility of the actions of the company (Lindgreen, & Swaen, 2010).

A multinational corporation also referred to as MNC is basically a particular corporation that has its services and facilities as well as other assets that it possesses in at least one other country which is not its home country (Ghoshal,& Westney, 2005).These are the companies that have its factories or offices located in several different countries but as well have a head office which is centralized where they are able to co-ordinate the global management of their companies. The major multinational corporations in the world are mostly either Japanese, American or from the Western Europe. These include companies such as Toshiba, Coca-Cola, Wal-Mart, Nike, AOL, BMW and Honda among others.

Read also Is Pursuing a Policy of Corporate Social Responsibility a Useful Part of a Company’s Competitive Strategy

The advocates of multinationals claim that these companies are able to create employment as well as bring forth wealth to the countries that are much in need of such development. Critics on the other hand say that these multinationals have political influence over their host governments and can thus cause exploitation to the developing nations and at the same time create huge losses of jobs in their home countries.

I deny the statement that “A multinational corporation has no moral or social responsibility to engage in corporate social responsibility (CSR) programs.”This is because corporate social responsibility or CSR has been increasingly a very essential element in the world of business.Many people in the present world have negative thoughts towards these corporations in that the businesses have for over a long period of time taken advantage of the society as well as the consumers.

Most of these people think that businesses are basically all about making of profits and thus have very little or no concern about the public, the human rights issues and the environment. They feel like these do not make much contribution to the society. Thus, many corporations have tried in the best way they could to make these negative thoughts be erased from the minds of the people. They work hard to prove this with their actions. This is the main reason why many companies are increasingly engaging in socially responsible activities. Most of the businesses, including the medium as well as the small sized businesses are at the present times working tirelessly towards the establishment of the strategies and programs to ensure the balancing of the areas of both social responsibility and profitability.

When a multinational organization practices Corporate Social Responsibility, it actually benefits the company in very many ways especially when implemented properly. First of all, the implementation of CSR boosts the reputation of the company and as well increases the brand awareness(Kotler

& Lee, 2005, p.14). The company thus stands out when comparison is made with other companies even when they share the same product and price. The sales will as well be increased as the clients will with no doubt opt for the companies that deal with the issues that concern them a lot. It has been found that most people are at most times ready to switch to the companies that have a positive image and which as well has support for a good course. Secondly, it enables the reduction of the operating costs of the company. Some of the companies which are very good corporate citizens ensure that their CSR efforts are directed to environmental issues. They protect the environment through reusing, recycling and reducing as well as participating in educating the citizens to ensure environmental sustainability. This ensures reduction in the operating cost in the long term.

Thirdly, most companies taking part in CSR practices at the end become more recognizable. They eventually reduce the advertising costs on the CSR programs they are undertaking. Finally, the companies that possess a positive image and a high reputation are able to retain their employees as well as attract more talent to work in the company which is considered as being socially responsible(Kotler & Lee, 2005). Most of the employees actually feel more honored to work in a corporation that has focused on the implementation of Corporate Social Responsibility rather than the corporations which have not. Most people as well do not prefer to work in organizations that have a bad reputation on their CSR practices.

The multinational corporations which practice the Corporate Social Responsibility programs are considered as being just in their distribution. In this case, they exercise the concept of distributive justice in that it ensures the allocation of goods in a society is socially just. These corporations ensure that the goods they produce are equally distributed in the region. For example, a company like Toshiba dealing with electronics ensures that their products are evenly distributed within their region of operation. This will enable every person in need of their products are able to access it. It will also maximize on the sales. On the other hand, if an organization needs to direct their services to a population but they lack the exact target population, the re-distribution of wealth is then employed. This involves what we can term as unjustly taking the goods that have been acquired justly and then distribute them to others. This is basically done by governments rather than the multinational corporations mainly through taxation of the social spending programs such as health care programs.

The CSR are considered to be almost the same as the triple bottom line concept. This is because both these conceptsdirect and moderate a corporation by making an examination on the conditions that are suitable for a business to exist. A triple bottom line concept is basically an accounting done on the business performance in the terms of the impact it has on the economy, the society and the environment. These two are basically the same although there exists a very fine line between the two. CSR employs some of the types of Triple Bottom Line reporting. For instance, if a company that puts forth a report that its Corporate Social Responsibility activities have made a contribution in reduction of water pollution in the lake and thus resulting to reduction of the water borne diseases is actually referring to the two P’s that is the people and the planet which is present in the TBL concept. In summary, the CSR activities enable the corporations to adhere to the triple bottom line accounting.

To sum it up, trends are thus changing as shareholders and consumers do not focus of profitability and price alone respectively. Most shareholders in the current economy thus focus on investing in a company which is obviously profitable but also has a very high reputation on all the social aspects. The consumers as well put more emphasize on the quality, brand image as well as value other than the price. It is thus very advisable for every multinational corporation to make a consideration on having a CSR program among their daily duties.

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Ethics, Corporate Social Responsibility and Sustainability – BUACC5934 Financial Accounting

Assignment  Instructions– Ethics, corporate responsibility and sustainability

Acknowledging the conceptual differences between the three concepts – ethics, CSR and sustainability and their complementariness:

  1. Review the 2016 or 2017 annual report for two ASX companies from the following list: BHP, Fortescue Metals Group, Rio Tinto Group with a view to understanding how each company integrates the three concepts into their business environment. One of the companies must be BHP. (500 words)
  2. Has there been any significant environmental disasters reported in the recent annual reports for either company? (500 words)
  3. Describe the impact of the accident on the natural environment, communities, and global sustainability. (500 words)
  4. Review the literature on corporate social responsibility with a view to understanding how companies can become more genuine in their operations abroad, especially in remote communities. (500 words)

Rio Tinto Group Vs BHP Billiton – Ethics, Corporate Social Responsibility And Sustainability Sample Paper

Company Overviews

Rio Tinto is amongst the leading international mining groups and combines Rio Tinto plc, which is a London-based and listed public company, and Rio Tinto Limited that is also listed on the ASX (Australian Stock Exchange). The two firms have been combined in an organization with a dual listed structure as one economic enterprise known as Rio Tinto Group. The company has diverse interests in products and geography with most of its assets being in North America and Australia. Moreover, Rio Tinto also operates in Africa, Europe and Asia. The company’s core businesses include underground and open pit mines, refineries, smelters and mills, in addition to service facilities, exploration and technology.  On the other hand, BHP Billiton was founded in 2001 as a result of a merger between BHP, which is a natural resource-based firm, and Billiton, which is a mining company. At present, the company operates in a total of 25 nations, and employs roughly 41,000 individuals and its current market value stands at over $250 billion (bhp.com, 2017, pp. 1-48). Rio Tinto Group and BHP are involved in a number of corporate social responsibility activities, and also incorporates sustainability and ethics in its operations. These are as discussed below

Sustainability

According to Rio Tinto Group annual report, the company’s products assists in satisfying the needs of consumers and improving their living standards, and this is mainly realized through safe operations and closure of operations, sustainability and responsibility. Rio Tinto’s long term approach to business has ensured sustainability given that the development of first rate ore-bodies into big, long-life and effectual operations, as well as the development and application of technology at the mines, smelters and refineries are performed with sustainability in considerations. This has enabled Rio Tinto to sustain a competitive edge through the use of business cycle.

Through its business cycle, Rio Tinto group has been able to ascertain that its values underpin the manner it manages social, environmental and economic effects of its operations. The company carries out rigorous review processes and evaluations that are targeted at ascertaining that only approved investments offering attractive returns in the long-term, while simultaneously ensuring minimal adverse effects linked to its activities on the environment, individuals and communities (riotinto.com, 2016, pp. 1-99).  Further, in closing all its assets’ life cycles, Rio Tinto begins the planning for its operations closure during the initial development stages so as to minimize the risks while maximizing outcomes. The closure planning is mainly targeted at minimizing the social, environmental and fiscal liabilities and the associated costs through discovery of sustainable and beneficial prospective land use. The company also rehabilitate its mining sites whenever probable.

On the other hand, with regards to BHP, it can be observed that to ensure sustainability in its operation, the company ensures protection of the environment by demanding that its suppliers’ operations must be in a manner that is protective of the environment and also compliant to the various applicable environmental laws, standards and regulations, environmental reporting and permitting.

Corporate Social Responsibility

With regards to Corporate Social Responsibility, Rio Tinto is determined to leave a lasting legacy in areas of its operations. Thus, recognizing that any major production operations tend to have key impacts on the communities where it operates, Rio Tinto has not only created jobs and business opportunities for the locals and local organizations but has also developed infrastructure. Moreover, the company makes efforts towards ensuring that the communities in which it operates are not left devoid of economic engines to drive them. For instance, In the Saguenay, Rio Tinto has extended the life of its investments and also promoted broader investment in the community before closing down its operations. The company has also engaged the community in securing the communities future in Vaudreuil through its aluminium refinery facility which is a significant employer in the community.

Consequently, concerning its CSR activities, BHP defines its CSR policies as requirements for tackling risks, and overtly asserts that it does not tolerate misconducts that are linked to forced, compulsory and child labor. To comply with its various CSR policies, BHP tends to make use of several methodologies. This takes in but is not restricted to carrying out progress evaluations in relation to its performance in comparison to the United Nations’ Global reporting Initiative and the Global Compact Principle that have been developed with the objective of aligning the companies’ operations. BHP also holds a yearly forum on CSR, and this is intended to bring together the various representatives of the company’s senior administrators, the communities’ opinion leaders and major non-governmental organizations with the objective of debating and discussing environmental issues that are pertinent to the organization. Investing in various community projects and also documenting its contributions to the community and spending to facilitate the achievement of the UN MDG goals. This also offers the organization with a consistent framework for assessing tangible progress.

Ethics

With regards to ethics, Rio Tinto seeks to develop sturdy, lasting and trusting relations with its host communities, and acknowledges and respects the individual’s human rights and cultures, as these are some of the principles that are found in the company’s values, standards and policies and makes up its ethics. The company undertakes economic and social impact assessments with the objective of comprehending the various implications of its activities to enable the reduction of the negative effects.  To attain this, the company works together with the local communities to develop vivid and transparent contracts that are vital to the provision of access to land that is required and for the direction of benefits individuals affected by the activities of the firm.

On the other hand, with regards to ethical practices at BHP, the company has instituted a number of measures to stem out incidences of corruption, extortion and bribery. For instance, Boiral and Henri (2017, pp. 283-317) asserts that the discussion regarding the actual extent of the responsibility and accountability has persisted on. In this regard, BHP maintains that all contracts pertaining to payments and transactions and inclusive of those that are in connection with hospitality and gifts, as well as other notable expenses have to be precisely documented in logical and comprehensible details in the records and books of the suppliers working on behalf of BHP. In its ethics policies, BHP also calls for the fair treatment of all its workers, payment of reasonable living wages, workplace safety and health, as well as freedom of association amongst the workers and managers.  BHP also makes attempts geared towards the safeguarding of various protected areas and heritage sites through the use of environmentally friendly fuels including bio-fuels in its operations, compliance with the various laws, as well as the protection of the environment and the indigenous rights and freedoms.

Significant Environmental Disaster

One of the significant environmental disasters that Rio Tinto has faced [in recent times regards its Panguna Mine in Bougainville, Papua New Guinea. According to Lin, Li and Bu (2015, pp. 28-39), the residents of Bougainville for a ten year war against the company and won leading to the mine’s closure. The company was accused of having used a number of bulldozers and chemical defoliant during the construction of the copper mine, and this destroyed the rain forest which was a major source of subsistence to the local populations.  Rio Tinto was also accused of dumping billions of tons of various harmful mine wastes that were generated from its mining activities into the pristine waters and on land, filling up key rivers with numerous tailings and polluting key bays and the Pacific Ocean, several miles away. The pollution from the mines was extensive leading to the exposure of the island residents to harmful chemicals and probable death and disease.

Regarding significant environment disasters caused by BHP, it can be noted that in the year 1996, BHP Billington was sued by Gordon and Slater for having cause one of the globe’s most destructive environmental disasters as a result of it discharging more than one billion metric tones of waste materials along with tailings into one of the key sources of OK Tedi River that is found in Papua, New Guinea. The pollution resulted in deforestation that covered close to 3000 square kilometers, in addition to turning the tropical rain forests into savannahs, and also causing an acute decline in the area’s fish population (95 percent decline).

Impact of the Disaster

The impact of the environmental degradation that occurred on Bougainville Island as a result of Rio Tinto’s operations include the observation that the water and air pollution resulted in serious health challenges amongst the locals, and this included asthma, upper respiratory conditions and TB amongst others. Moreover, the disaster led to loss of livelihoods by the locals given that they were no longer able to carry out farming activities, fishing and hunting. The traditional diets of the locals were replaced by processed foods and this also increased obesity incidences. Moreover, the environmental degradation disaster also led to international condemnation by various human rights groups given that it did not only affect the local residents but the oceans also got polluted. As a result, the company was forced to close the copper mine and this resulted in huge losses being suffered by Rio Tinto.

Similar to the case of Rio Tinto, the pollution of OK Tedi River that is found in Papua, New Guinea by BHP resulted in the loss of livelihoods by the locals are residents of Papua New Guinea are highly dependent on the rain forests for food and business products. The deforestation, therefore, implied that they were unable to access their traditional foods and also business commodities including medicinal plants and timber.  Moreover, the reduction of the fish population and the subsequent destruction of forests implied that the local residents were nolonger able to fish and hunt animals for food. As a result, they opted for processed and imported food stuff that are considered as unhealthy and this resulted in increase in cases of diseases and conditions such as obesity. The pollution additionally resulted in the contraction of diseases by the local including Asthma, TB, various skin conditions and upper respiratory diseases. At the global level, the pollution caused by BHP activities led to global outcry especially from various environmental rights groups. As a result, the outcries led to the portrayal of a negative image of BHP owing to its actions, and given the observation that it was perceived as failing to take into account the rights of the local residents.

How Companies Can Become More Genuine In Their Operations Abroad

Having observed the various ways through which Rio Tinto Group and BHP Billiton have conducted their CSR activities and also faced challenges due to environmental disasters resulting from their mining activities, it can be concluded that there is a need for the two organizations to become genuine and enhance their CSR activities abroad. To attain such enhancements, Bice (2014 pp. 62-80) observes that one way an organization can become increasingly genuine in its foreign operations and in remote areas is by strengthening the support for CSR initiative so as to consistently attain higher degrees of CSR associated services to the organization’s operations in their foreign operations, as well as developing networks and local partnerships with various communities as well as strengthening the organization’s leadership, best practices and excellence in the company and the industry. Consequently, Ross (2017, pp. 187-201) asserts that additional training and increased support for the organization’s workers so as to ascertain that they are adequately equipped to detect various issues in time and actively contribute to their solution prior to their escalation.

Moreover, improving CSR in foreign operations requires the refocusing of the CSR experts roles by reinforcing its mandate and promoting sturdy CSR guidelines for the company. The company should seek for guidance in integrating such guidelines into their programs and operational approaches (Fuisz-Kehrbach, 2015, pp. 101-115). The CSR expert should also build on the activities that are carried out in foreign operations through the refocusing of the efforts on continuously working to avert, recognize and resolve various disputed during their initial stages.

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Discussion : Extent to Which A Company Embraces Corporate Social Responsibility

Corporate social responsibility (CRS) defined as a business practice that engages and participates in inventiveness and programs that profit sand help the society (Chu, 2013). Further, CSR is now becoming more common as forward-thinking companies entrench and set in continuity and sustainability into the center of their business functions to establish and generate joint and collective value for the society and business. Consequently, the notion and concept of corporate social responsibility imply that organizations have philanthropic, ethical, and moral obligations as an addition to their duties and responsibilities to create and earn a fair return for shareholders and abide by the law. A conventional outlook and analysis of the organization advocates and recommends that it’s central, or exclusive, responsibility, is to its investors or stockholders. Conversely, corporate social responsibility entails that organizations implement or espouse a wider view of its responsibilities not only to the investors’ but also to the local community, suppliers, customers, state, environmental groups, and special interest groups.

Toms Shoes Company

TOMS Shoes is a for- profit business company that consist of a benevolent and philanthropic aspect or element (Barnett. n.d). Therefore, the company was established after, Blake Mycoskie, founder, observed the scarcity and poverty amid villagers in Argentina, scarcity so severe that the villagers could not even pay for or own a pair of shoes. Consequently, Mycoskie arrived in the United States with a mission and 200 Argentinean shoes.  He wrote a unique business plan and went to various retail stores.  His aim was to start an organization that would offer a pair of shoes for a needy child in need, for every pair of shoes procured. Finally, the idea was singled out by Los Angles boutiques, and the business has $ 9.6 million in revenue.

The Aspect of Corporate social responsibility for TOMS Shoes

The TOMS business plan and model is unique and remarkable. As many companies employ and participate in the cause -related marketing, at TOMS they believe that the philanthropic element or aspect is very vital and significant, as for- profit business. Therefore, the cost of offering shoes to children in poverty is established from the shoes’ sales price (Zimmerman, 2009). Further, the customer becomes the sponsor and benefactor, allowing and giving a chance to TOMS Company to become a sustainable organization founded on giving back to the society, and the world on a constant basis. While people keep on and continue purchasing TOMS shoes, every needy child will receive a pair of shoe in return. Conversely, TOMS Company makes a profit, sustains and supports itself, enlightens the customers on how they are helping children from poor backgrounds just by providing them with a pair of shoe, thus making the world a better place.

Benefits of TOMS Shoes in using Corporate social responsibility

Since, corporate social responsibility isn’t just about doing the correct and the right thing, but also it entails behaving reliably, and dealing with dealers and suppliers who do the same. Additionally, it builds a reputation to the company at hand and offers direct business benefits (Zimmerman, 2009). Consequently, TOMS Company is a benefactor to this benefit, as it has been able to create a notable reputation to its investors and the world. Hence, it has a positive impact on how they seen by their customers, society, and the world.

In conclusion, the above case study explains how TOMS Shoes are important and are the core of the company’s activities, since for this reason; it has contributed to its profitability and revenues.

Corporate Social Responsibility: Impacts of Value Added – Ralph Lauren Corporation

Value added can be defined as the additional something a corporate does to a product that formulates it appeal more than the cost of its fundamental parts. For instance, adding a brand     name to a general product, amassing a number of diverse parts in an exceptional way that no one has ever done before. It is also a term used to describe the amount taxed on a product at every phase of the product cycle. In addition, the intellectual expertise and skills of an individual, or group of people, contributes to added value of a product (Reed, Fraser, & Dougill, 2006).   Economists define value added as the difference between the gross revenue for an industry, and the sum of the labor, materials and services purchased to manufacture the products, in order to generate the revenue of the industry.   This is comparable to contribution margin in business.  Calculation of the total value added by an industry, will aid the economists to know how much that industry has added to the nation’s gross domestic product.

Outline the goals and indicators for measuring development progress for a nation.

Ralph Lauren Corporation was built in, on March 20, 1997.The Corporation is affianced in the design, distribution, and marketing of lifestyle products; clothing, home furnishings, accessories, and other licensed products.  It operates in three sections: Licensing, retail, and wholesale. Wholesale business, operates   approximately 46% of net revenues, from sales made to stores around the world. Retail business, also   manages approximately 52% net revenues, this include, direct sales to consumers through retail channel.  Licensing business, also manage revenues of about 2%.It consists of license to unconnected third parties (Robert, Parris, & Leiserowitz, 2005).  The corporation also has the right to operate retail stores, use its trademarks in line with the designed products. Ralph Lauren Corporation is a multi-national corporation; hence it has formulated Sustainable Development Goals. Well fashioned goals and indicators will unite civil societies, governments, business and organizations to end extreme poverty and achieve sustainable developments. Ending extreme poverty is one of the most important sustainable goals. The government needs to implement ways to cur food shortages and improve on food security. Ensuring all people access health facilities will also promote humanity. Education is also of great paramount, good learning facilities should e availed to everyone.

How do goals and indicators for measuring development progress relate to Ralph Lauren Corporation?

This corporation focuses on, energy efficiency, packaging, recycling and logistics. This has resulted in considerable sustainability gains. The company ensures its products are transported by air; as a result, the company has reduced on air pollution. It has also discovered other ways product distribution; ocean freight, and truckload (World Resources Institute. 1995). Competent practices to conserve energy have been executed at many company y the company. They are computer based systems that aid in, lighting, heating, ventilating and air conditioning. Also the company has recycling practices in all of its corporate offices. It is known for its cartridge recycling program me. Finally Ralph and Lauren Corporation, works with integrity for the environment. This is because of the measures it has implemented to curb environmental pollution.

Research the value adds the corporation is creating for the community and itself. What are the community reactions? How does this affect the corporation’s success?

The Ralph Lauren brand has flourished for many years, this has brought, an attractive, exemptional, and classic fashion industry. The new technologies have made the company to increase in the added value. Ralph Lauren is already brand names that will be passed to many generations (Parris, & Kates, 2003).  The community has greatly benefited from the success of the corporation.

Is Pursuing a Policy of Corporate Social Responsibility a Useful Part of a Company’s Competitive Strategy

Corporate social responsibility is all about behaving in the right manner as a business organization in relation to giving benefits to the society. Moreover, a socially responsible company also takes it upon itself to deal in a fair way with its suppliers who also practice the same policies. In most cases, the socially responsible companies are able to get a competitive advantage over their rival companies. The customers have a way of giving positive ratings for the companies that are considered as socially responsible.

Being socially responsible is important for any business because for one it gets positive ratings from the customers therefore making it easy for such a company to recruit new employees. The confidence that the society has on such companies would make anyone wish to work for such an organization. Additionally, a good reputation makes the company gain a competitive advantage over rivals because it makes sales without experiencing difficulties. It is through the sales that the company will be able to make profits and thereby beat its competitors (Kramer, 2006).  Companies that are socially responsible stand a chance to save on their costs especially when it comes to the implementation of energy saving programs. Moreover, such companies can save costs by reducing the investments made on the traditional forms of advertising. There are also risks that normally face a company which if not handled properly may cause huge losses to the company. Corporate social responsibility comes in handy to ensure that the risks and liabilities are managed efficiently.

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Social responsibility is also beneficial to the company because it creates platforms for interaction with various parties and stakeholders whose existence affects the operations of the organization. The constant form of interactions will therefore help to know and unlock new business opportunities (Kramer, 2006).