Corporate Social Responsibility How far should it go?

Résumé du document

Corporate Social Responsability, how far should it go? Corporate Social Responsibility (CSR) is 'the policy and practice of a corporation social involvement beyond its legal obligations for the benefit of the society at large'. CSR aims to make any negative impact small or non existent, and a positive contribution at the same time to shareholders. According to the Down Jones sustainability index, twenty Australian firms are listed in amongst the best sustainable companies in the world. For instance, Australian banks and mining companies are involved in microcredit programs and indigenous workforce development, respectively. Some say it provides irrelevant returns to shareholders, the others think not practicing CSR deserves critics, boycott and no success. This paper argues businesses should adopt CSR because it improves general economic performances of the firm. Three major advantages are presented in the first part namely reputation, financial performances and the global dynamic. The second part will discuss and respond to the major counterclaims namely, research weaknesses, consumer skepticism and the evidence of failures to apply CSR.

Extraits

[...] Therefore, failures mainly result from ‘partial' adoption of social responsible measures. The industry shows CSR is not likely to fail if CSR is totally integrated into the business plan. AMB321 Advertising Management 10-16 SUMMARY To summarize, this paper shows CSR increases the reputation of the firm, improves financial performances and benefits from a worldwide and local dynamic to adopt it. The trend shows CSR performance becomes more measurable, thus improving research on its overall impact. Also, consumer skepticism can be avoided if CSR adopts a strategy that rightfully responds to consumers expectations. [...]

[...] Briefing paper: New Labor Government will be good for Corporate Social Responsibility [Document on the Internet] Australian Center For Corporate Social Responsibility (ACCSR) [cited 2008 April 2]. Available from: URL http://www.accsr.com.au/pdf/Tracking_CSR_Occasional_Paper_4.pdf Australian Center For Corporate Social Responsibility (ACCSR). About CSR capabilities. [up dated 2008 April; cited 2008 April 2]. Available from: URL http://www.accsr.com.au/html/csrcapability.htm Business for social responsibility (BSR). BSR advisory services: Experience and expertise. [updated 2008 April; cited 2008 April 2]. Available from: URL http://www.bsr.org/consulting/index.cfm Light L. Marketers, Seize the Opportunity to Help Heal Society's Ills. Advertising Age [serial on line] [cited 2008 April November. Available from: Advertising Educational Foundation, URL http://www.aef.com/industry/news/data/2007/7059 Murphy J. [...]

[...] Secondly, CSR has a positive impact on external stakeholders, as it benefits from more transparent management. Business transparency is necessary to achieve, at this stage of the life of ethical brands, a competitive edge (16). The authors say transparency is not just about products, but it extends to every element that goes into making the product and the business that produces it. The Australian based Oil search company developed this concept in Papua new guinea. Transparency stemmed from having good relationships with communities and stakeholders at the bottom line (17). [...]

[...] Wespac 2007 stakeholder impact report [Document on the Internet] [ cited 2008 March 30] Available from: URL http://www.westpac.com.au/manage/pdf.nsf/1CF9748975779566CA2573AE007BA74C/$File/SIR_2007.pdf?O penElement Davis G. and C. Moy. Coming to terms with business tranparency. Admap [serial online] [cited 2008 March 487; 19-22. Available from: Warc database Botten P. ABC's Radio National program, Life Matters. [document on the Internet]. Australian Center of Corporate Social Responsibility; 2008 February 20 [cited 2008 April 1]. Available from: http://www.accsr.com.au/html/resources.htm Costigan F. Sydney speech to ACCSR conference. Australian Center of Corporate Social responsibility [Document on the Internet]; 2008 [cited 2008 April . [...]

[...] At an international level, “Countries that adapt practices perceived as successful in other countries without researching their own consumers' attitudes cannot hope to succeed based on the same premises” For instance, Botten justified the success of Oil Search' social responsibility in Papua-newGuinea, Yemen, Egypt and Tunisia because it applied an “operating culture system” that considered each local characteristics, in turn reducing local level of skepticism. Therefore, a full understanding of how consumers perceive the company's motivation is likely to reduce the skepticism level, thus reducing risks of CSR's obsolescence. Marketers should concentrate on informing and making consumer more aware in considering their unique and respective profile AMB321 Advertising Management 9-16 COUNTERCLAIM 3 The evidence of failure in CSR. Adopting CSR does not exclude risks of failures as shown in the oil industry. [...]