Introduction
Corporate Society Responsibility (CSR) is to invest in the well-being of the society and organizations have realized that it is their responsibility to give something back to the society as they generate revenues and profits from the society. Paper manufacturing industry has become competitive over the years in the market of China. This report analyses one of the leading companies in the paper manufacturing industry, Orient Papers. The report reviews the company and the sector in which it operates. The report also analyses the financial, operational and organizational review of the company. The report then discusses the summary of the management philosophy and positioning regarding the CSR. Moreover, the report also analyses need for getting involved in CSR activities and how the company is managing its resources in managing people and its resources to achieve the CSR objectives. At the end, the report provides a conclusion of the overall topic.
the sector and the competitive space in which Orient papers operateS
Orient Paper is one of the leading paper manufacturing companies in the region of North China. The company is located at the center of triangular region formed by Beijing, Rianjin and Shijiazhuang. The region is one of the growing industrial regions of the world and manufacturing activities are conducted on a large scale in this particular region. Moreover, this region is also one of the biggest markets for consumption of paper products in the country (Orient Papers Inc, 2012b). Therefore the location of the company gives Orient Paper an advantage to capitalize on the opportunities in this growing region.
Orient paper was established in the year 1996 and the company had initially started with the manufacturing of packaging paper. The company today offers a range of services as it offers the services of packaging and printing to more than 100 companies as well as paper products distributors. In addition to this, the company also offers printing services as well. Considering the increasing demand of the products of the company, the company has installed new paper production line in order to increase the capacity as well as to launch the commercial production in the year 2011 (Orient Papers Inc, 2012b).. So it can be said that despite of increasing competition in the market, the company has been expanding its services and production capacity which is a positive sign. Thus with a strong historical background and growing sales and production capacity of the company, the company enjoys competitive advantage in the competitive industry.
financial, operational, and organizational overview of the company
The revenues of the company have been improving over the years. The company has reported increasing revenues in the last four years as presented in the figure below. In addition to this, the Gross profit margins and operating profit margins of the company have also been found increasing. Gross profit margins have been 17.6%, 17.7%, 20% and 13.9% in 2009, 2010, 2011 and 2012 respectively (Orient Papers Inc, 2012a). Similarly, the operating profit margins of the company have increased since 2009 however it decreased in the year 2012 as shown in the figure below:
(Orient Papers Inc, 2012a)
Cash flow from operating activities has also been increasing. The cash flow from operations decreased slightly in 2011 as the company invested for increasing production (Orient Papers Inc, 2012a). Moreover, the cash of the company has also been increasing thus showing strengthening position of the company.
(Orient Papers Inc, 2012a)
The operations of the company have also been showing improvements over the years. The production of the company has been increasing over the years and it highlights the improving operations of the company. The increasing production capacity is shown in the figure below:
(Orient Papers Inc, 2013)
management philosophy and positioning with respect to CSR
Orient Papers has always been considerate about the overall society. The company considers the environment as well as the society in its operations. For this purpose, the management has implemented modern technologies for paper making. The main values of the organization are Innovation, Excellence and Advancement. In addition to this, the philosophy of the CSR activities of the company is “Green, Environmentally-Friendly, and Promoting Sustainable Development" (Orient Papers Inc, 2012c). Thus it shows that the company wants to operate in a way that the environment is not hurt and it encourages sustainable development. The management of Orient Paper Inc. understands their position as one of the leading paper manufacturing companies in China and therefore they aim to constantly make efforts to achieve this goal
circumstances that trigger the need to adopt its CSR initiatives, programs and actions
It has become important for organizations today to be involved in activities that help the overall society. Corporate Social responsibility has become important as the organization needs to give back to the society from where it is generating profits. Moreover, consumers prefer organizations that work for the society and for the environment and thus CSR activities help organizations in improving their brand image as well as giving competitive edge.
Paper industry is considered as one of the industries that negatively influences the environment. Papers are produced from trees and trees are important for keeping the environment green. Thus, for organizations that are operating in the paper industry need to invest on society and environment in order to improve their image as a whole. Therefore such changes and the increased awareness of consumers along with increasing emphasize on keeping the environment and making it sustainable have triggered organizations in the industry to focus on CSR activities.
the targeted outcomes intended by top management
CSR activities are helpful for organizations in a number of ways. These activities not only help the society but positively influence the company as well. CSR activities are helpful in improving the brand image of the company. Moreover, these activities portray a better picture of the organization and therefore these activities are aimed to market and promote the offerings of the company. In addition to this, these activities help the organization in reminding the consumers. Therefore organizations also invest in CSR activities in order to improving their brand image and to portray a better picture of the organization and show how much they care about the society and environment. So the objectives of the organizational CSR activities are to improve their image and let the consumers know that the organization cares about the society and environment.
How the management uses its human resources and financial resources to accomplish their CSR goals
The philosophy of the management of Orient Papers is “Green, Environmentally-Friendly, and Promoting Sustainable Development” (Orient Papers Inc, 2012c). For this purpose, the management uses its resources in the best possible manner in order to achieve its goals. The management strives hard to make sure that the human resources as well as the financial resources of the organization help the company in portraying a better image to the overall society and achieve the objectives of CSR activities.
References
Orient Papers Inc. (2012a). Q4 & FY2012 Financial Results Presentation. Available from http://www.orientpaperinc.com/images/ONP%204QFY12%20presentation%20final%20version%2018March.pdf [Accessed 27 April 2013]
Orient Papers Inc. (2012b). About Orient Papers. Available from http://www.orientpaperinc.com/about.html[Accessed 27 April 2013]
Orient Papers Inc. (2012c). Our Philosophy. Available from http://www.orientpaperinc.com/Corporate-Mission.html[Accessed 27 April 2013]
Orient Papers Inc. (2013). Investor Fact Sheet, March 2013. Available from http://www.orientpaperinc.com/images/ONP%20Fact%20Sheet.pdf [Accessed 27 April 2013]
