Professional Documents
Culture Documents
Corporate Social
Corporate Social
C13122086E
Program BSEBM
Level 1:1
Assignment 1
QUESTION
Citing practical example argue for and against the assertion that
corporate social responsibility is nothing but a marketing gimmick
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Introduction
M a r k e t i n g i s a p r o c e s s o r s ys t e m o f r e s e a r c h i n g i n t o i d e n t i f yi n g
c o n s u m e r n e e d s a n d w a n t s a n d a p p l yi n g s u i t a b l e p r i c e , p r o d u c t , p l a c e
a n d p r o m o t i o n s t r a t e g i e s i n o r d e r t o s a t i s f y t h e s e n e e d s p r o f i t a b l y.
P h r a s e s l i k e ‘ m a r k e t i n g g i m m i c k s ’ , ‘ m a r k e t i n g p l o ys ’ a n d ‘ m a r k e t i n g
tricks’ abound. The result is that marketing is condemned by
association.
Definition of terms
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History of corporate responsibility
The above quote lets us know that the way busi ness is viewed has
changed over the years. A concept that was once seen as a total waste
of resources has now become an essential part. This has changed
b e c a u s e t h i s g e n e r a t i o n i n c o m p a r i s o n w i t h t h e p r e v i o u s b u ye r h a s
m o r e c h o i c e , a n d b u yi n g p o w e r t h u s t h e c o n s u m e r s t h e s e d a ys o n l y
settle for what they consider the best, not necessarily the best that’s on
offer.
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Advantages of corporate social responsibility to the firm
Enhances ability to recruit, develop and retain staff . This can be the
d i r e c t r e s u l t o f p r i d e i n t h e c o m p a n y’ s p r o d u c t s a n d p r a c t i c e s , o r o f
introducing improved human resources practices, such as “family -
f r i e n d l y” p o l i c i e s . I t c a n a l s o b e t h e i n d i r e c t r e s u l t o f p r o g r a m s a n d
a c t i v i t i e s t h a t i m p r o v e e m p l o ye e m o r a l e a n d l o ya l t y. E m p l o ye e s a r e n o t
only front-line sources of ideas for improved performance, but are
champions of a company for which they are proud to work for.
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C r e a t e s “ s o c i a l l i c e n c e ” t o o p e r a t e i n t h e c o m m u n i t y. I m p r o v e d c i t i z e n
and stakeholder understanding of the firm and its objectives and
activities translate into improved stakeholder relations. This, in turn,
may evolve into more robust and enduring public, private and civil
society alliances (all of which relate closely to CSR reputation,
discussed above). CSR can help build “social capital.”
There are also benefits which the society will enjoy in the short term.
Their memories of the socially responsible business will last forever.
Employment. The immediate society will gain greatly from this because
s i n c e t h e y w i l l b e e a r n i n g s a l a r i e s . S a l a r i e s i n c r e a s e b u ye r / c o n s u m e r
p o w e r , t h i s m e a n s t h a t t h e e m p l o ye e s w i l l b e a b l e t o p u r c h a s e g o o d s
and enjoy certain services which they could not before. The
g o v e r n m e n t w i l l e n c o u r a g e t h i s b e c a u s e t h e u n e m p l o ym e n t l e v e l s o f t h e
country will reduce.
R i g h t l e a d e r s h i p , i n t e g r i t y, p r o f i c i e n c y , c o m m i t m e n t t o s o c i a l v a l u e s o f
a manager can change the expected behaviour of individuals
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Companies should provide mechanism for whistle blowing as a matter
o f p o l i c y . A n y e m p l o ye e b e c o m e s a w a r e o f u n e t h i c a l b e h a v i o u r s h o u l d
be encouraged to report incident to his superior
Loss of Focus. A main driver at the onset of CSR was increased interest
in making the customer a primary focus of business operations. This
coincides with continued realization that customer retention and
l o ya l t y a r e k e ys t o l o n g - t e r m b u s i n e s s s u c c e s s . D e t r a c t o r s o f C S R a s a
major component of corporate governance argue that guidelines have
e x p a n d e d b e yo n d t h i s b a s i c i n i t i a l e m p h a s i s . D a v i d V o g e l p o i n t s o u t i n
his "CSR Doesn't Pay" article for Forbes that many companies that
abide by CSR guidelines do so more from fear of public backlash than
because they believe it is good for long -term business performance. He
adds that most parties generally agree that taking care of customers is
good in the long run, but expensiv e requirements in human rights,
environmental sustainability and community development are too much
to ask of many companies.
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Lasting Impact. How long CSR will remain a prominent business
concern is a common question asked by those who argue against CSR as
a major concern with corporate governance. According to the My
E f f i c i e n t P l a n e t w e b s i t e , C S R h a s e x i s t e d f o r m o r e t h a n 5 0 ye a r s .
However, its prominence as a major business consideration has
certainly increased in the 21st century due to heightened awaren ess of
ethical issues in business and environmental preservation standards.
Detractors argue that CSR emphasis is a short -term fad in response to
prominent scandals like Enron, and current interest in green -friendly
practices.
Evaluation
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as a profit making objective for an organisation. Stakeholders have an
influence to organisational views on right or wrong taking into
consideration justice and sustainability. Thus meaning that the firm
shouldn’t aim to make a profit at all costs, rather these compa nies no
matter how big or small should do the morally correct and just.
Conclusion
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References