CHAPTER 1: INTRODUCTION
1.1 BACKGROUND
The field of corporate social responsibility, CSR thereafter, has grown exponentially in the last decade. More so with fast moving consumer goods, FMCG thereafter, which include companies such as Unilever, P&G, Reckitt Benckiser and Nestle. These companies have engaged in serious efforts to define and integrate CSR into all aspects of their businesses. There is increasing demand for transparency and growing expectations that corporations measure, report, and continuously improve in their social, environmental and economic performance (Palmer, 2012)
Over the years, CSR has been given many definitions. It has been described as, the responsibility of organisations to take account for their environment
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This will be achieved through employing a mixture of accounting and market based measures to identify the nature of the relationship between CSR and CFP in the given …show more content…
This study attempts to provide information on the impact of CSR on financial performance which internal stakeholders can use to structure business strategies and maximize future returns. If firms are interested in investing in social responsibility initiatives, this study predicts how their organizations will be impacted financially and describes strategies managers can employ to satisfy their constituents (Nkomani, 2013). In general, this paper seeks to analyse the relationship between CSR and profitability in the FMCG industry over time, to determine whether CSR causes a positive or negative effect on profitability on specific FMCG companies operating in the Republic of South Africa.
The study specifically seeks to:
• Investigate the overall impact of CSR on profitability in FMCG companies.
• Investigate whether it has had a positive or negative co-relation between CSR and Profitability over years.
• Investigate whether increased ratings by these organisations on CSR initiatives over the years have led to an increase in profits.
1.5 IMPORTANCE AND BENEFITS OF THE
INTRODUCTION:- Jurlique International Pty Ltd. is an Australian cosmetics manufacturer specializing in natural botanical-based skincare and cosmetics under the brand name Jurlique. Jurlique is considered ethical and environmentally friendly. Jurlique was founded in 1985 the Australian state of South Australia by Dr Jurgen Klein and his wife Ulrike. The company 's name is based on a phonetic combination of their first names.
Coles Supermarket Australia Pty Ltd is an Australian supermarket, owned by Wesfarmers. It is commonly known as Coles and was founded on 9th April 1914 in Smith St, Collingwood, Victoria. Till now, Coles has operated over 700 stores throughout Australia and employs over 100,000 employees. It controls 35% of Australian supermarket industry. Coles was founded when George James Coles opened the Coles Variety Store on the street in Melbourne.
Modern day businesses have to be socially responsible; actions are taken to satisfy customers who might have a cause that they care deeply. Social responsibility occurs when a person or a company acts in an ethical and sensitive way towards important social issues of the day such as economic, environmental, and cultural concerns. Many businesses have a section of their website or business literature dedicated to social responsibility. Companies proudly detail the steps they are taking to address concerns that people have with the environment and economic issues. Having companies act in a socially responsible way is necessary because their actions have a tremendous positive impact on society.
This brings forth the question of what makes a fair balance between satisfying one’s personal benefits and carrying out collective commitment towards our environment as a consumer? Although we are pre-occupied by our busy lives and want to save time, we should not forget our responsibility in being a good corporate citizen
It is the firm’s obligation to evaluate in its decision-making processes the effects of its decisions on the external social system in a manner that will accomplish social benefits along with the traditional economic gains, which the firm seeks. It means that social responsibility begins where the law ends. A firm is not being socially responsible if it merely complies with the minimum requirements of the law, because this is what any good citizen would do.” A firm will not survive without the support of both the stakeholders and shareholders, thus the CSR proposes the indication which states that a firm can never exist In a vacuum (Khalidah et. al.).
Corporate Social Responsibility (CSR) relates to the actions of an organization and the effects on the environment and social wellbeing. It is about the way that the company assesses its actions and takes responsibility for this. (Investopedia, n.d.) CSR is a management concept whereby companies integrate social and environmental issues in their business operations and interactions with stakeholders . The company aims to achieve a balance of economic, environmental and social objectives, while also listening to the needs of stakeholders.
SOCIAL RESPONSIBILITY As we defined above that social responsibility is to protect and enhance well-being of living things. Every organization is socially responsible to protect the environment and they can do there much which is legally required for the organizations. The very first social responsibility of every business is that to earn enough profit to meet his expenses. If the firm cannot earn profit no social need and social responsibility can be met by the firm the firm fails.
1. Define acronyms CRP, EDI, OSB, ECR and explain. CRP stands for "continuous replenishment program". CRP was a process that P&G created in order to increase logistic efficiency. The process consisted of using electronic data interchange (EDI), which is an electronic system that transmits data instantaneously from one business to another.
On the contrary, the practice of CSR is an important consideration for long-term investment as it can help generate more profit in the future. In this report, Nestlé would be one of the good examples to illustrate those concepts. Nestlé is one of the world’s largest food and beverage companies. The company believes that by creating value for the shareholder and the public, it will have long-term sustainability.
Davis (as cited by Khalidah, Zulkufly, & Lau, 2014) defined Corporate Social Responsibility (CSR) as “… the firm’s consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm. It is the firm’s obligation to evaluate in its decision-making processes the effects of its decisions on the external social system in a manner that will accomplish social benefits along with the traditional economic gains, which the firm seeks. It means that social responsibility begins where the law ends. A firm is not being socially responsible if it merely complies with the minimum requirements of the law, because this is what any good citizen would do.” A firm will not survive without the support of both the stakeholders and shareholders, thus the CSR proposes the indication which stats that a firm can never exist In a vacuum (Khalidah et.
Analysis of Financial Statements Student number: 10221450 Word count: 2993 words Excluding Bibliography Course code: B9AC106 Course title: Financial Analysis Lecturer: Mr. Enda Murphy Company: Whitbread PLC Table of Contents 1. Whitbread plc 3 Financial Ratio Comparison 6 1.1 Profitability Ratio 6 1.2 Liquidity Ratio 9 1.3 Efficiency Ratio 11 2. Intercontinental hotels group plc and Ratio Comparison with Whitbread 12 3. 10% Stake in Intercontinental Hotels Group PLC 13 Conclusion 16 Market Value and Book Value
Motilal oswal securities Ltd The Motilal oswal ltd company was the parent company of the Motilal oswal securities ltd, it was the subsidiary company. Motilal Oswal Company was established by Motilal oswal and Raamdeo agarwal in 1987 and gets the membership from the BSE. It got it final certificate of registration approval in the year 2010 from the securities and exchange board of India regarding the setup and expansion of the business of mutual funds in the country. Motilal oswal securities ltd was incorporated in the year 1994 and its main business is stock broking and wealth management. Motilal Oswal Company has 99.95 % holdings previously which became 100 % holdings In Motilal securities ltd .It was one of the subsidiary company of the
In the recent years more and more companies in the retail and food industry are concerned about the environmental consequences of their action and also the social ethics for the people involved in the production process. This is a shift from the philanthropic actions companies used to take in 1970’s and by following basic international standards to a ‘business case’ perspective of CSR (Customer Social Responsibility). According to the World Business Council for Sustainability Develpoment ( WBCSD) CSR is: ‘’ the commitment of business to contribute to sustainable economic development, working with employees, theirfamilies, the local community and society at large to improve their quality of life’’ (World Bank, 2002)
Corporate Social Responsibility (CSR) relates to the actions of an organization and the effects on the environment and social wellbeing. It is about the way that the company assesses its actions and takes responsibility for this. (Investopedia, n.d.) CSR is a management concept whereby companies integrate social and environmental issues in their business operations and interactions with stakeholders. The company aims to achieve a balance of economic, environmental and social objectives, while also listening to the needs of stakeholders.
This report aims to critically analyse, interpret and evaluate the financial performance of Next plc based on the annual report and compared with a retail industry average, discuss the limitations of ratio analysis, draw a conclusion and make some recommendations to its potential investors. Next plc is a UK based retailer offering clothing, footwear, accessories and home products. Under the dual influence of the gloomy economic environment and the sluggish retail industry, its financial performance was unsatisfactory over the year from 2016 to 2017 compared to the previous financial years. Although Next plc remained a strong ability to generate profits, it is still recommended that investors should be more cautious if want to invest in Next