Literature Review
There is a conceptual framework as well, which has been taken into consideration for the same analysis.
Conceptual Framework
Financial performance:
The financial performance refers to the performance altitude of the company during the specific frame of time. The financial performance of the company is measured in terms of profit or loss during a certain period. The assessment of financial performance enables the investors as well as decision making authorities to evaluate a company’s policies and activities to achieve monetary objectives. There are numerous studies in which there is a sign of a strong relationship between CSR and financial performance has been empirically analyzed by multiple authors. According to Ferris, the other elements should be remained constant during the evaluation of financial performance and cash flow’s instability while implementing the CSR conducts (Ferris, 2007). Moreover, with reference to Caroline Flammer, the implementation of CSR poses amusing impacts over the financial performance in terms of increment in the share price value and increasing the operational performance in the long run (Fleischer & Meinberg, 2014).
Corporate forming image:
Corporate image refers to the image that is considered as a mental picture of the corporate. Therefore, the sum of all perceived elements in regard to corporation can be termed as forming corporate image. Apart from it, the corporate image is not merely designed by the company single-handedly but the other aspects are also involved in forming the corporate image that includes Media channels, Journalists, sustainability/public relations etc. As reported by Lizarraga in the year 2010, the corporate social responsibility definitely reflects pleasant impacts over the corporate image from various dimensions. Those positive repercussions seem to be in various formats such as through reliability and constructive behavior by the consumers, through positive idle talk and by number of ways (Lizarraga, 2010).
Corporate identity:
Every business contains specific image that portray the organizational structure and image that may be negative or positive in front of investors and customers. The communication department of business is held responsible for building and maintaining the corporate image in order to achieve desired organizational goal. There are a number of professionals and scientist that are mutually agreed on the fact that the CSR play an important role in accomplishing the decision making process. In accordance with Peloza in 2011, the essence of CSR is equally significant in making attractive corporate identity by giving an edge and distinction that may leads towards the success of the business (Peloza, 2011)
Corporate individuality:
Corporate individuality is mainly comprised of corporate philosophy, corporate norms, culture, objectives and strategic management. According to Mofokeng (2003) state that the corporate individuality is responded as a fundamental part through which the corporate identity is created, and it then leads to form corporate image (Mofokeng, 2003). On the other hand, Spitzeck (2009) argued that the corporate individuality is highly dependent on the corporate social responsibility factors for instance human right based regulations, sustainability, green environment, etc. The corporate communication is the most influential and essential part for the survival of the organization. The structure of corporate communication is entirely based on three categories such as primary, secondary and tertiary. Belmar (2000) investigated that the primary communication involves information regarding the product, organizational structure, workplace environment etc. while, the secondary communication are directed to mass communication and the tertiary communication mainly involves supply of information to competitors, word of mouth etc. As claimed by Chattananon (2007), which reported that the CSR can be recognized through CSR characters organizational culture and CSR communication. Characters symbolize illustration identity such as trademark, sign and other aspects. However, the information in regard to corporate social responsibility can be communicated through three channels consist of primary, secondary and tertiary (Chattananon, 2007).Therefore, it has been proven that the corporate image is a crucial concept that is a combination of corporate identity, corporate individualism and corporate communication. The corporate image can be persuaded through planning and unexpected arrangements of the organizations. However, there is no doubt from the fact that the corporate social responsibility is interrelated with corporate individuality and individuality makes corporate identity and then it is followed to corporate image. Hence, it is verified that all those attributed are directly associated with CSR.
The common perception of CSR indicates that the company is subjected to take certain responsibilities concerning of their effects over the society. Similarly, human rights are also considered as a significant part of corporate social responsibility. The companies that are committed to discharge corporate social responsibilities are always strive to keep active adherence to the ethical values and internationally approved human rights mechanism. Those compliances are certainly paints a positive picture over society and human rights, as well. In accordance with Kelly (2006) stated that human rights are fairly pertinent to the corporate practices from different aspects such as economic, social and environmental. Community based programs can be referred as social programs that enable different socially active organizations, NGOs, evaluators to provide assistance to particular communities within their environment. The CSR also has keen interrelation with community based programs from numerous aspects that are certainly impacted with the performance of CSR activities.
The purpose of green environment strategy is to reduce CO2 emissions from the atmosphere that is dreadful for the whole nature and for the world. Therefore, the enforcement of CSR functions is certainly proved to be supportive to reduce the CO2 emission from the environment and promote a green environment culture across the globe. The CSR activities are strictly compliance to the ethical and moral values that the companies are adopted to undertake responsibilities that show a spiritual image of the company.
Theoretical Framework and Proposition
In this particular analysis, it is required to analyze the CSR effectiveness for the organizations in particular. It is important for the organizations to execute their financial and non financial targets and goals accordingly and effectively at the same time. It is required to analyze the effectiveness of being ethically and economically active and its impact over the financial and strategic position of the organization in particular.
There are different independent variables which have been introduced and defined in this particular analysis, and all of the aspects are effective and well organized. In terms of theoretical framework and proposition, organizations have to consider the effectiveness of this particular aspect.
Dependent and Independent variables are related to each other from different aspects, and they have to consider by a researcher in order to get the things done in an effective and organized manner. Both of these variables are quite related with each other from different viewpoints. The effectiveness of research depends heavily upon the stance of dependent and independent variables in particular. Dependent Variable is only one, while there are a number of independent variables in particular as mentioned in this particular analysis as well. The productivity and effectiveness of this particular research depend heavily upon this particular aspect that how independent variables would be effected from the dependent variable. Like, if the CSR is dependent variable, which to be used by the organization would certainly have a definite impact over the financial position, human rights and other aspects of a company.
All of the defined and described independent variables are effective and organized for this particular study, and all of these aspects are inter-related with each other. It is clear that, if organization would become effective in terms of managing their ethics and corporate social responsibility would have a definite impact over different independent variables in particular. Therefore, it could be effective for their future consequences. It is required to maintain and design a perfect and organized theoretical framework stance for the proposition and analysis. However, if all of these aspects would have been defined considerably, then it would be extremely vital to manage the things accordingly. There are a number of variables that have been implicated and applied here accordingly and effectively at the same time. The main reason that why all of these variables are related to this particular study is that all of these would like to react in an effective manner for the sake of the organization. All of these variables have a definite and strong relationship with the effectiveness of an organization in particular. The theoretical framework of this particular aspect is integral and effective at the same time, and it would be extremely vital for the sake of the company. It is also important for the researcher to select a perfect methodology for the analysis in particular. Before describing the methodology which should be used for the same analysis, it is important for the study to include different hypotheses that should be used in this particular analysis.
Hypotheses
There are six different hypotheses which are required to cover in this particular analysis
HO = Null Hypothesis
HA = Alternative Hypothesis
1)
HO: There is no significant relationship found between compliance with Corporate Social Responsibility rules and regulations and betterment of the financial position of an organization
HA: There is a significant relationship found between compliance with Corporate Social Responsibility rules and regulations and betterment of the financial position of an organization
Description: In this hypothesis, it is required to analyze the relationship between corporate social responsibility, its compliance and its impact over the financial position of the organization in particular. Both of these aspects are important from the viewpoint of the organization, hence differentiation and analysis would be done on the basis of hypothetical analysis.
2)
HO: There is no significant relationship found between compliance with Corporate Social Responsibility rules and regulations and Forming of Corporate Image of an organization
HA: There is a significant relationship found between compliance with Corporate Social Responsibility rules and regulations and Forming of Corporate Image of an organization
Description: In this hypothesis, it is required to analyze the relationship between corporate social responsibility, its compliance and its impact over the corporate image of an organization in particular. Both of these aspects are important from the viewpoint of the organization, hence differentiation and analysis would be done on the basis of hypothetical analysis.
3)
HO: There is no significant relationship found between compliance with Corporate Social Responsibility rules and regulations and Forming of Corporate Identity of an organization
HA: There is a significant relationship found between compliance with Corporate Social Responsibility rules and regulations and Forming of Corporate Identity of an organization
Description: In this hypothesis, it is required to analyze the relationship between corporate social responsibility, its compliance and its impact over the corporate image of an organization in particular. Both of these aspects are important from the viewpoint of the organization, hence differentiation and analysis would be done on the basis of hypothetical analysis.
4)
HO: There is no significant relationship found between compliance with Corporate Social Responsibility rules and regulations and enhancing the level of corporate communication in an organization
HA: There is a significant relationship found between compliance with Corporate Social Responsibility rules and regulations and enhancing the level of corporate communication in an organization
Description: In this hypothesis, it is required to analyze the relationship between corporate social responsibility, its compliance and its impact over the level of communication in an organization in particular. Both of these aspects are important from the viewpoint of the organization, hence differentiation and analysis would be done on the basis of hypothetical analysis.
5)
HO: There is no significant relationship found between compliance with Corporate Social Responsibility rules and regulations and betterment in the Non-Financial Performance in an organization
HA: There is a significant relationship found between compliance with Corporate Social Responsibility rules and regulations and betterment in the Non-Financial Performance in an organization
Description: In this hypothesis, it is required to analyze the relationship between corporate social responsibility, its compliance and its impact over the non financial performance of an organization in particular. Both of these aspects are important from the viewpoint of the organization, hence differentiation and analysis would be done on the basis of hypothetical analysis.
6)
HO: There is no significant relationship found between compliance with Corporate Social Responsibility rules and regulations and reduction of co2 Emissions
HA: There is a significant relationship found between compliance with Corporate Social Responsibility rules and regulations and reduction of co2 Emissions
Description: In this hypothesis, it is required to analyze the relationship between corporate social responsibility, its compliance and its impact over the reduction of Co2 emission in particular. Both of these aspects are important from the viewpoint of the organization, hence differentiation and analysis would be done on the basis of hypothetical analysis.
Methodology
Research Approach:
Research approach is a technique through which the author has collected the entire research. The term research approach and research based approach can be synonymously used for each other. Therefore, in order to enlighten the ways that are adhered to conduct and analyze the data, the research approach comes up with a unique approach that author has been taken into consideration for the whole procedure.
The research approach that has been applied in this particular scenario is a qualitative approach in the best possible and comprehensive manner. The study named deductive can also be termed as a quantitative approach and the inductive approach is known as a qualitative approach. Among them, the quantitative approach is the most widely exploiting approach to undertake the research data. In this particular research approach, the means through which data is collected can be comprised of sample size either large or small and analyze the whole data by placing them in statistical technique.
Research Objective:
The objective of the research that has been taken into consideration for the study is exploratory. In such a research questions are already defined, and the problem is stated whose answers are attempted to be found through the study.
Research design:
Correlation or descriptive is the research design that has been taken into consideration while performing research method. Therefore, in this particular research design, the data is conducted by means of observations. Generally, there would be multiple variables use in this research and the relationship between them would be examined. The Descriptive study aims to create a bottom line of a concerned argument before the process of investigation occurs, and the whole design is free from all sorts of manipulation within the theme or their environment is activated. In particular, the time restriction is always there for completing the research paper and the descriptive research design is used for the same purpose. As a result, the descriptive research design has been chosen to augment the consistency and authenticity of the data. It will also assist to keep the data away from any form of manipulation that will make sure that the data collection procedure has been executed in a transparent and impartial environment.
The research is based on both qualitative and quantitative. There are six independent and one dependant variable that has been used to prepare hypothesis includes:
Corporate Social Responsibility: Dependant variable
Financial Performance: Independent variable
Forming Corporate Identity: Independent variable
Corporate Identity: Independent variable
Corporate Communication: Independent Variable
Non Financial Performance: Independent variable
The reduction of co2 emission: Independent variable
Data source:
The entire data source comes directly from external sources in which different research papers would have been selected accordingly.
Sample size:
There are more than 10 companies that have been selected in order to analyze the impact of the CSR on different independent variable which have been selected for the analysis.
Statistical tool
There are a number of statistical tools which have been used for the purpose of analysis and when it comes to statistical analysis, and then there are different tools that could have been taken into account. Co-relation and Regression analytical tool are the statistical tools which have been taken into consideration for the same analysis.
Discussion & Implications
Organizations are always tried to enhance their productivity with efficacy and efficiency at the same time, and the essence of Corporate Social Responsibility (CSR) is extremely vital and effective for the sake of the organization. It is more than important for an organization to keep the flow of effectiveness of the company remained at a higher level; otherwise it will become extremely difficult for them to stay in the business for a long span of time. It is important for an organization to have the stance of CSR as it has a direct linkage with the productivity of an organization in particular. It is required to analyze the effectiveness of CSR in terms of having different variables, and it is found that CSR is an important element for all of these variables, which often known as Dependent Variables. Corporate social responsibility is the organization’s regulation that is associated with every organization while performing their functions. The policy provides a complete mechanism to the company in terms of ethically viable where the critical evaluation has been undertaken to make sure that all the functions are strictly adhering to ethical values, intercontinental laws and regulation. The initiative is usually taken by organization to sustainability of the environment and stay away from any unpleasant impact towards the social welfare that is raised through company’s operations. However, the policy enables the organization to incur certain investment towards these efforts that are considered as a short-term investment. These investments are able to give financial profit to the company on instant basis, but they are portraying message in promoting the green concept and become a part of evolutionary campaign for a positive approach towards social and environment aspects.
Conclusion
Organizations always try to enhance their corporate image with the help of different aspects and strategies and when it comes to multinational organizations. However, there are certain elements that deem vital for their success along with the enhancement and betterment in the corporate communication among the employees of the company. All of the six hypotheses which have been selected in this particular assignment heavily connected with the financial and strategic position of the company. It has been also observed that if the company would remain in the same jurisdiction and complies with the CSR, then the chance of economic and strategic prosperity is high.
References
Chattananon, A., Lawley, M., Trimetsoontorn, J., Supparerkchaisakul, N., & Leelayouthayothin, L. (2007). Building Corporate Image Through Societal Marke
Balmer, J. M. T., & Greyser, S. A. (2006). Corporate Marketing. Integrating Corporate Identity, Corporate Branding, Corporate Communications, Corporate Image and Corporate Reputation. European Journal of Marketing, (7/8), 730-741. http://dx.doi.org/10.1108/03090560610669964
Spitzeck, H. T(2009). The Development of Governance Structures for Corporate Responsibility. Corporate Governance, (9), 495-505.
Mofokeng, Th. N. (200). Development and management of corporate image in South Africa. European
Green, T., & Peloza, J. (2011). How does Corporate Social Responsibility Create Value for Consumers? Journal of Consumer Marketing, (1), 48-56. http://dx.doi.org/10.1108/07363761111101949.
Lizarraga, I. (2010). Benefits of Corporate Societal Marketing. Helium.com. Available from internet:
http://www.helium.com/items/1841732-benefits-of-corporate-societal-marketing-csm
Fleischer, D., & Meinberg, C. (2014). CSR and Financial Performance Linked, Moskowitz Prize-Winning Scholar Reveals. Triple Pundit: People, Planet, Profit. Retrieved 10 June 2014, from http://www.triplepundit.com/2014/02/csr-financial-performance-linked-reveals-2013-moskowitz-prize-winning-scholar/
Ferris B., (2007) “The corporate social performance financial performance link.” Strategic Management Journal, 18 (4): 303-319.
Isobel Doole, R.L. (2008) International Marketing Strategy: Analysis, Development, New York: McGraw Hill.
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