COLLAPSE SUBDISCUSSIONKathryn Kelly1:49pmJun 10 at 1:49pm
Manage Discussion EntryHello Marcus,
Corporate Social Responsibility (CSR) is emerging as an important addition to the strategies for company success. In the past, companies that hurt their customers or the environment were eventually punished financially and their images suffered. Mattel is suffering right now for failing to recall a baby product associated with infant deaths. British Petroleum (BP) is still trying to repair its image after the oil spill ten years ago. The Climate Crisis has elevated CSR to the forefront, and repercussions for harming the planet are swifter. The Covid crisis is a good example of how companies can pitch in and exhibit social responsibility. Do you think the emphasis on CSR will continue after this crisis? Why or why not?
Kathryn
12:22pmJun 10 at 12:22pm
Manage Discussion EntryCorporate social responsibility has been defined as “the integration of business operations and values whereby the interests of all stakeholders, including customers, employees, investors, and the environment are reflected in the organization’s policies and actions” (Smith, 2002,) and “the obligation of the firm to use its resources in ways to benefit society, through committed participation as a member of society, taking into account the society at large, and improving the welfare of society at large independently of direct gains of the company” (Kok et al, 2001). Organizational social responsibility recognizes that businesses have a certain amount of power and benefit based on their economic impact and they have a responsibility to something greater than the benefit of their immediate stakeholders (Adams & Zutshi, 2004).
Social responsibility has a positive impact on the outcomes of the organization in the areas of better recruitment and retention, better decision making, improved corporate image and relationship with stakeholders, and protection of corporate investments (Adams & Zutshi, 2004). Social responsibility should be valued within the organization when the organization relies on members of the community when it relies on the community as a part of its economic generation and success. More discretely, organizations should choose social responsibility when legal implications of not following social responsibility values would negatively impact financial gains or when negative perceptions of the organization would decrease financial gains
As corporate social responsibility and the impact thereof is considered as a necessary activity for organizations, guidelines for how to engage in corporate social responsibility in an ethical and sustainable way have been designed. The Internal Organization for Standardization (ISO) created a voluntary set of standards in 2010 to guide companies in the implementation of corporate social responsibility within their organization (ISO 26000- Social Responsibility, 2020). The ISO 26000 is a global standard for how to engage in corporate social responsibility and although it creates guidelines, it does not measure the efficacy of implementing such guidelines. Young-Park and Wook-Kim (2011) suggest an operationalized approach to implementing ISO26000 measures which create causality between activities of corporate social responsibility and outcomes of company reputation. The article suggests that engaging in corporate social responsibility as outlined by ISO26000 does increase company reputation and customer loyalty as long as the activities are clearly defined and measured to address a certain level of achievement (Young-Park & Wook-Kim, 2011). For I/O psych practitioners, this research informs the implementation of corporate social responsibility measures and helps to create a framework for the implementation of corporate social responsibility that will be effective.
When corporate social responsibility is addressed globally, the necessity for responding to CSR with social commitment and sustainability becomes even more apparent, according to Abad-Segura, et al. (2019). Global implementation and implications of CSR will require that the organization meet standards of sustainability, even in countries where environmental requirements are much more lax and less ecological responsibility is expected. The global social commitment to CSR has implications for organizations as well, as understanding the complex and varied social needs across cultures will have an impact on how CSR is implemented.
References:
Abad-Segura, Cortés-García, & Belmonte-Ureña. (2019). The Sustainable Approach to Corporate Social Responsibility: A Global Analysis and Future Trends.Sustainability,11(19), 5382. https://doi.org/10.3390/su11195382
Adams, C., & Zutshi, A. (2004). Corporate social responsibility: Why businesses should act responsibly and be accountable.Australian Accounting Review,
14(34), 31-39.
Kok, P., T. Wiele, R. McKenna & Brown, A. (2001). A Corporate Social Responsibility Audit Within a Quality Management Framework.Journal of
Business Ethics, 31, 4: 285–97.
Smith, K.( 2002). ISO Considers Corporate Social Responsibility Standards.The Journal for Quality and Participation,25, 3: 42.
Young Park, J., & Wook Kim, S. (2011). Global corporate social responsibility standard, ISO 26000 and its effect on the society.Asian Journal on Quality,12(3), 315–322. https://doi.org/10.1108/15982681111187146