Suzuki Motors Case Study

3.2.2 Corporate Social responsibility of Suzuki Motors

Through the Suzuki Foundation subsidies are offered to higher academic institutions and research organizations for studies in various fields. The SUZUKI Education & Culture Foundation performs activities such as educational support through the supply of scholarships money to youth having difficulties in concentrating on their studies for a financial reason.

Suzuki is promoting environmental conservation through its “Suzuki 2015 Environmental plan” that demonstrates voluntary goals of environmental conservation up to fiscal 2015 and the key areas addressed are suppression of global warming, promotion of environmental conservation, promotion of the three Rs (Reduce, Reuse, and Recycle) and

Brammer and Millington(2005) stated that there is a positive relationship between CSR and reputation of an organisation. Whooley(2005), “reputation will enhance profitability and long run survival of the business if it is used appropriately.”

Findings showed that corporate reputation in Kia Motors and Suzuki motors goes beyond image building derived from public relations but is an intangible asset to bring the corporation to the best position in the corporate world. Reputation is what they earn from various stakeholder groups. Stakeholders in corporate communication are divided into internal (employees, managers, shareholders etc.) and external (government, public, media and channel partners). Managing stakeholders is key if corporations are to stay distinctive, visible and transparent among competitors. Corporate communication and reputation cannot be managed without considering the value of CSR. CSR is not a one-off project, it is a sustainability work and those corporation who cannot sustain CSR projects should stay away from it, or it will ruin their

The socio-economic and environmental context play a significant role in reputation as it is a key element that defines how a company is portrayed and perspectives for future growth. Though CSR companies tackle stakeholder interests hence engaging the community which in turn affects the reputation in a progressive way. Companies that are strongly committed to CSR initiatives tend to have higher customer loyalty and trust (Stanaland, Lwin and Murphy, 2011). Appendix 15 illustrates how CSR creates a great ecosystem where all variables that influence reputation co-exist. CSR does not have a direct impact on a company’s financial performance but it can strengthen reputation and lead to competitive advantage.

4.3 Recommendations and Suggestions

To analyse the corporate reputation of a company one has to; Holistically look at the internal and external strategies. Analyse all the elements of corporate reputation that is to say image, identity, identification and communication strategies of the company. More research to authenticate the validity of measures of the corporate story’s relevance, realistic, sustainable and responsive. A link ought to be made between CSR and financial performance.

4.3.1 Suggestions to Kia Motor Corporation and Suzuki Motor