“Corporate Social Responsibility (CSR) is likely to gain growing importance for business”
Introduction
The difficulty in finding and maintaining skillful employees who make business organizations booming is the result of a revolution. The revolution is the new perception of the employees’ role in different organizations, as realization comes that skilled employees make the difference between winning and losing, and like other revolutions, its impact will withstand for a very long time. This revolution led to the ascend of the twenty-first century type of employment relationship, which emphasizes on the use of technology, being an essential part of strategies and means of companies to increase its production and to ensure the quality of the product. Similarly, with the role of technology in their development, companies can properly evaluate the performance of their employees and the opinions of their customers regarding their products and services. With this, the quality of the product and services offered by the company must be improved to be able to meet the standards of their customers. This is related to the concept of corporate social responsibility, being a concept that would be able to support the ideas said above.
Importance of Corporate Social Responsibility
Corporate Social Responsibility or CSR is a concept emphasizing that different organizations have an obligation to consider the interests of their customers, workers, stockholders, communities and the environment in all the aspects of their operations, which broaden beyond their legal commitment to comply to legislation (‘Corporate Social Responsibility’ 2007). In addition, it is a multidimensional assembly consisting of four subsets of economic, legal, ethical, and voluntary philanthropic responsibilities. Economic responsibilities of a business include producing commodities and services that the society needs and wants at a price that can bring about the success of the business and satisfy its responsibilities to shareholders. Legal responsibilities are basically the laws and regulations they must follow. Ethical responsibilities are those behaviors or activities anticipated by the society to be followed by the organizations, yet not codified in law. Voluntary philanthropic responsibilities are those behaviors and/or activities desired by society to be done and observed by the businesses, and referring to business assistance to society in terms of quality of life and welfare, such as giving to charitable organizations or supporting community projects (Dimitriades 2007). In this sense, it can be perceived that the concept of CSR serves as a guide to business organizations or companies in terms of fulfilling their obligations in the environment, to their stakeholders, consumers, to the law, and to the whole society as well. This is because, as a company that would be earning the trust of the public or the society, they must be able to fulfill and satisfy the needs and wants of its consumers. As such, these business organizations would be able to prevent themselves from violating ethical, legal, environmental, and societal laws or rules that may cost them the success of their business.
In addition, not only does the concept of Corporate Social Responsibility is being regarded as one of the most considered concepts in terms of business, but also, it has become considered as a management tool. Five important facts are said to indicate, as to why the concept of CSR is being regarded as a management tool. According to de-los Angeles et al (2007), (1) the globalization process is stressed, wherein three zones of economic influence have emerged, namely, the United States, the European Union, and Southeast Asia, including China and India; (2) large development of law is being evidence within developed countries; (3) larger companies are increasingly coming up with behavior codes and corporate social responsibility memoranda; (4) financial markets have adopted the concept by developing tools; and (5) an increasing realization among human collectives, such as NGO’s, fair trading organizations, and the media is being indicated. In this regard, it can be observed that there has been a global concern for adopting and utilizing the concept of CSR in business organizations. This is because for the assumption that adopting such a concept or idea would enable a particular business organization to attain success in its respective industry. In terms of business organization benefits, adopting and utilizing CSR helps to advance financial performance, lessen operating costs, boost brand image and reputation, augment sales and customer loyalty, develop productivity and quality, enhance ability to attract and retain employees, diminish regulatory oversight, have access to capital, boost workforce diversity, and focus on product safety and reduce liability. In terms of its benefits to the community and the society, the use of CSR would present charitable contributions, persuade employee volunteer programs, and corporate involvement in community education and employment. Lastly, environmental benefits can also be attained, including better material recyclability, improved product durability and functionality, better use of renewable resources, and amalgamation of environmental management tools into business plans, such as life-cycle assessment and costing, environmental management standards, and eco-labeling (‘Corporate Social Responsibility (CSR)’ 2007). The range of benefits that can be achieved in terms of using the concept provides success and forward-thinking, thus, becoming a good and appropriate means for a desirable end.
Application of CSR to a Business Organization
Tesco is the principal retailer in the United Kingdom and is now presently intensifying. Since the retail industry experiences very dissimilar changes almost everyday, it is just indispensable to evaluate its approach on change. Being a powerful corporation, Tesco has an enormous responsibility to maintain the interests and needs of its customers, personnel, stakeholders and the environment. With this enormous responsibility, the corporation must be able to ascertain good relationships with their associates and customers, thus, serving them to deal with with their growth and encountered circumstances. The concept of Corporate Social Responsibility is important Tesco since this idea takes in the organization’s entire responsibility and obligation, in line with its objectives in its industry. This is given stress and value, for with this concept as a guide, companies are given the edge in coping with rivalry among other business organizations. Because of the assortment of products that the store retails, it has been able to confine the trust of its customers, thus, takes pleasure in the reputation of being the country’s chief retail corporation. It has achieved the assurance and faithfulness of its consumers, such that the products offered in their store serve as hint that the company gives value to their needs, thus, showing the significance of the customers. Highlighting this concept enables the company to be sensitive in meeting the demands of its market, employees and stakeholders, thus, sustaining the goals of the company. In addition, with this as guide, the company will be able to contribute to helping maintain the environment, thus, becoming an effective instrument in keeping the environment clean and conducive to living.
In addition, through adopting and utilizing the concept of CSR, Tesco has been triumphant in their obligation in remembering and taking note of the demands, desires, and wants of their patrons. Because of the diversity of goods that the grocery store retails, it has able to retain and maintain the trust of its customers, thus, being able to take part in the prestige of becoming the country’s leading retail company.
Consumer values refer to those profits focused on solving customer problems and dilemmas, and not merely on the products and services themselves. Its spotlight is on the consumer and on solving their problems (‘Scope of Strategic Marketing’ 2003). With the benefits the company is benefiting from at the moment, it can be stressed that it was able to present their patrons not only with useful goods and services, but also with realistic solutions that reveal their importance as customers. In addition, because of the increase in profits and sales, Tesco has also met the outlook and demands of its human resources, in terms of resource allocation, finances, rewards, enthusiasm, synchronization and direction. With ample resources, the workforce has been provided with sufficient income and rewards that would allow them to perform better. From this, it can be understood that not only does the concept of Corporate Social Responsibility or CSR be the means for organizations to achieve external responsibilities, but internal responsibilities and obligations as well.
Conclusion
From the discussion, it can be deduced that the concept of Corporate Social Responsibility is imperative to consider in any business organization, including Tesco. Corporate Social Responsibility or CSR must be integrated in the procedures and processes of any company for it to be able to accomplish its responsibilities and objectives in its respective industry. This provides organizations a means for supporting and preserving their status in the market. This is why the concept of Corporate Social Responsibility or CSR is increasingly regarded as an effective and relevant management tool, aiming to help attain success, growth, improvement, and development in the industry.
References
‘Corporate Social Responsibility’ 2008, Wikipedia, the Free Encyclopedia, viewed 13 March 2008, <http://en.wikipedia.org/wiki/Corporate_social_responsibility>.
‘Corporate Social Responsibility (CSR)’ 2007, Business and Sustainable Development: A Global Guide, viewed 13 March 2008, <http://www.bsdglobal.com/issues/sr.asp>.
De los Angeles, G, de-la Fuente, M, Giner, F and Griful-Miquela, C 2007, ‘The Importance of Corporate Social Responsibility and Its Limits’, International Advances in Economic Research, pp. 1-3.
Dimitriades, ZS 2007, ‘Business Ethics and Corporate Social Responsibility in the e-Economy: A Commentary’, Electronic Journal of Business Ethics and Organization Studies, vol. 12, no. 2, pp. 11-12.
‘Scope of Strategic Marketing’ 2003, Strategic Marketing, pp. 1-20.
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