WHEN CORPORATE SOCIAL RESPONSIBILITY POSITIVELY OR NEGATIVELY INFLUENCE THE CONSUMER ATTITUDE AND BEHAVIOR
Introduction
The quick enhance of corporate social responsibility (CSR) practices in many firms, a problem about the way in employee attitudes and behaviors has become critical. Nowadays, corporations devote their resources to corporate social responsibility (CSR) presuming that “doing good always leads to doing better” (Sen & Bhattacharya, 2001). There is a growing belief that CSR is a source of competitive advantage for the firms (Hart, 1995; Shrivastava, 1995) because it enhances firms’ reputation which results in favorable behaviors of different stakeholder groups such as employees, community and particularly consumers (Brown &
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CSR literature is still lacking commonly accepted definition of Corporate Social Responsibility (Carroll, 1991; Garriga & Melé, 2004; T.M. Jones, 1995; Kakabadse, Kakabadse, & Rozuel, 2007; McWilliams & Siegel, 2001). According to the well known and widely cited definition of CSR, “the social responsibility of business encompasses the financial, lawful, principled and unrestricted hope that society has of organizations at a given point of time” (Carroll, 1979, p. 500). In nastiness of the growing consequence of CSR, the literature still lacks its commonly accepted definition (Carroll, 1991; Garriga & Melé, 2004). Some scholars (Matten & Crane, 2005; McIntosh, Thomas, Leipziger, & Coleman, 2002) do not endorse Carroll’s interpretation of CSR. They propose that CSR should be beyond economic and legal responsibilities because every business must practice them. For instance, Matten and Moon suggest that “CSR is differentiated from business fulfillment of core profit-making responsibility and from the social responsibilities of government” (2008, p. 405). Similarly, McWilliams and Siegal (2001) also define CSR in a way that does not include economic and legal responsibility; they define it as “actions that appear to further some societal good, ahead of the wellbeing of the firm and that which is required by law” (p. 117). Jones too define the CSR in a same way as “the notion that corporations have an obligation to constituent groups in society other than stockholders and beyond that prescribed by law or union contract….. (1980, p. 59). While illustrating the challenges associated with the construct of CSR, Henderson (2001, p. 21) describes that ‘‘there is no solid and well-developed consensus which provides a basis for action’’. The lack of an ‘‘all-embracing definition of CSR’’
Businesses like Toms, that explicitly donate one pair of shoes for every pair purchased, have not always been present. Even businesses like Costco, that may just focus on investing heavily in how they treat and educate their workers have not always been a societal norm. This is because the idea of businesses having actively practicing a responsibility to their communities is relatively new. We have seen recent unprecedented competitive conditions that have compelled companies to look to strategy experts for answers to the following questions: (1) what does corporate responsibility mean and how can we measure our performance in it; (2) why are consumers concerned with this construct of corporate responsibility and what social issues matter to
Some organizations believe the act of selling a product, and a consumer purchasing it, is the extent to which CSR is needed. The consumer needed a product and the store met the social need by providing it. Other organizations have a much more holistic approach to CSR and believe the stores involvement in every facet of social responsibility is the organizations inherent duty. Most organizations fall somewhere in the middle. Bob’s Supermarket has struggled economically and the change in the social environment has led many consumers to have a much more hands on access to what and how an organization is doing, or doing it.
Target Corporation needs to buy more local and diverse product from an environmentally friendly company and create a standard that adds value to the local communities and environment. In addition, Target Corporation should source products from diverse international community, minority organization, and women run organizations. Target Corporation must diversify its retail products to add more goods that are sporting, a bakery, and household's items as well educational services using partner organizations. Target Corporation needs to identify new third-party strategic alliances through which it delivers goods at the doorsteps, selecting with a non-perishable item and eventually perishable items depending on the locations. Target Corporation
According to Tingchi Liu et.al (2014), the disadvantages of corporate social responsibility in the company are associated to the world’s development in order to save society from the environmental and economic issues. It is examined that NGO’s and government co-operation produce the better ways to solve corporate social responsibility issues and put the pressure on Tesco in order to integrate its CSR objectives and initiatives. Another disadvantage of CSR is a new policy that has been implemented by the company in order to take part in something new for the business. It can be said that CSR policies of the company have to pay for new training for staff, invest in effective waste systems with new marketing and new technology strategies. According to Vazquez-Carrasco and Lopez-Perez (2013), the stakeholder’s expectations are one of the disadvantages for the company because of the investment of them in the business.
Aaron (2011) defines CSR as encapsulating a broad field ranging from corporate commitments and ethical conduct to philanthropic gestures by corporations in their operating communities. Aguilera et al. (2007) use a definition of CSR, which refers to the firm’s considerations of, and response to issues outside the usual firm requirements to accomplish social and environmental benefits along with the traditional economic gains that 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 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.
Discussion Nestlé’s Corporate Social Responsibility consists of looking further then the own company needs or profits and pay more attention to other stakeholders. Everyone concerned or connected to the company business will get a closer look on their situation and will be treated right. They divide the stakeholders in two categories; the first being the internal stakeholders such as employees and shareholders. The second category is external stakeholders where we find the suppliers, customers, environment and so on.
1) Evaluate how Nestlé 's approach to corporate responsibility was good for their business. Corporate businesses generally have to meet ethical, legal, commercial and public expectations. That is what is expected of the business world today. This is known as the Corporate Social Responsibility (CSR). However, businesses with short-term goal will rarely practice CSR since practicing it does not bring any benefit.
Involved in CSR activities are proven to create good image and reputation for a company. In the long run, it helps a company to increase shareholders’ value and achieve sustainable business
Corporate Social Responsibility (CSR) initiatives seem to be a business imperative nowadays. In a survey done by McKincey (2009), over 80% of interviewed CFOs claimed that corporate social responsibility is included in their evaluation standards of business projects. And the majority of respondents believed in remarkably positive contributions of CSR to shareholders’ value, especially long term benefits. Apparently, fashion industry has realized this trend as well as a growing demand of socially responsible business behavior from consumer and other stakeholders. For example, H&M has been releasing annual conscious actions & sustainability reports since 2002, in which a wide range of dimensions of CSR initiatives are demonstrated carefully and
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.
"We are not in business to make maximum profit for our shareholders. We are in business...to serve society. Profit is our reward for doing it well. If business does not serve society, society will not long tolerate our profits or even our existence." Kenneth Dayton, former Chairman of the Dayton-Hudson Corporation 1.
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.
CSR plays an important role in world of business as it implies to do well by doing good. A large number of multinational units have set global standards, in which same technology is used throughout the world. This helps to create a strategic advantage as well as also serves to elevate the technological expectations. The CSR initiatives not only help in creating awareness and education, but it also helps in ensuring the growth of middle class people. Some of the companies make use of it by expansion of their consumer base in rural as well as urban areas.