Previously businesses were more concerned with the economic outcome, of the business decisions. However, in today's world business take time to also reflect on legal, ethics and morality issues with regard of the social consequences of decisions they make. The definition of corporate social responsibility no longer means the amount of financial resources a company contributes to society through charity. In addition to being involved in social activities, with the aim of improving the lives of people within the community.
Application of corporate social responsibility: organizations case study of Fedex and Microsoft
In its corporate social responsibility program FedEx believes that new entrants or existing employees should be trained to complete the task for which they are being hired. At FedEx trainings of an employee starts right from the day he/she enters the organization. All employees at their entrance went under a designed orientation which provides them with insight about the policies, history, core values and cultural norms of the organization. The training program regarding skill development is started after the orientation. The trainings program can be different based on the job nature of the employee (Whelan et al., 777). There is a continuous training program for customer service representatives, service agents and the couriers. FedEx believes in the empowerment of employee through their development. As such it continuously tries to modify the present level of our employee’s skills and capabilities say Mr. Larry McMahan (Vice President HR of FedEx). To test the knowledge and awareness of an employee regarding their respective job, FedEx has introduced a semiannually test program known as job knowledge test program. All employees are given marks based on their performance in their test and this score is again recorder by the PRISM which helps them in their promotions and development.
Microsoft social responsibility program is based on research and development of advanced technologies for software products of the future with the belief of breakthrough delivery in innovative and high value solutions for the benefit of the community in challenges such as health service delivery and micro economic programs (Wagner, 252). This being the main aspect in meeting the needs of the community for future growth as the company continually believes to lay a long term foundation for growth through delivery through products and services.
Background
The subject of corporate responsibility has become a major concerning international business community, as it is gaining ground as a mainstream corporate activity. There is also an increased recognition of the tremendous effect, corporate social responsibility activities have had on varying activities such as private sector components like labour force, clients, corporate competition, investment as well as other business groups. This becomes clearly evident that the contribution of organizations on the basis of individual wealth, in regards to the overall community resources takes into account global effects arising from decisions made.
History
While certain organizations have ceased every chance to attain profits without regard to the societal impacts there is also an equal historical balance to some companies assuming the philanthropic approach to a certain measure with the consideration of employees or provision of assistance (Whelan et al., 788). This led to the formation of corporation based on mutual cooperation as an alternative format to the organization as a reflection to the extended concern evolving around the effects of such corporations.
There has never been systematic lack of streamlined operations in the actions for benefits of the society although the unprecedented power held by corporations in recent years with the combination of information and overall public education creating a realistic approach to legitimacy within the organization with corporate social responsibility somewhat seeking to counteracting this notion. The aspect of corporate social responsibility was introduced in the 1950s following the publication of the Social Responsibility of Businessmen by Bowen that presented the question of responsibilities to societies and the reasonable expectation that people are held to assume. Research on this subject in the 1960S was extended to entail the definition of suggestions that preceded the legal obligations of organizations with specific responsibilities to society whereby in 1984 notable management consultant Peter Drucker presented the theory of the imperative to transform social challenges into economic opportunities (Whelan et al., 790).
Davis Model of Corporate Social Responsibility
The Davis Model of Corporate Social Responsibility provides a listing of five propositions with the description of the business approach that needs to be adhered to as well as the related obligations in form of action plans that seek to provide protection and improvement of the society welfare as well as that of the organization (Ngobo, 502).
The first proposition states that social responsibility culminated from social power is the proposition being derived from the perception of the business being significant with the measure of influence on power as well as the varied vital issues such as environment, employment that is minority as well as neighborhood development among others. In this case all business are required to hold a primary determination of the varied circumstance such as employment, the environment as well as the general working conditions in which the employees work. This the case as power as well as influence over the society hold the possibility in addition to being a stated fact of exercising power (Whelan et al., 785).
The second proposition states that the business will operate in the format of a two way approach with an open system which will entail open input receipts from society as well as open disclosure of the public operations. Furthermore, the business is required to hold the willingness to listen to the measures that need to be undertaken so as to sustain or provide improvement of social welfare in which case there is need for willingness to listen to business reporting on what is to be done to attain the social responsibilities (Whelan et al., 788). As such the Davis Model of Corporate Social Responsibility provides the suggestion that is continued with honesty and communication that is open between the society and the business on the condition that the general representatives for the society's welfare as well the overall society welfare needs to be sustained or improved.
Furthermore, the third proposition states that social costing and related benefits related to the activity, product servicing need to be calculated thoroughly as well as held into consideration of the decision of proceeding with it. In this case the technical feasibility as well as profitability economically in addition to the short term and long term outcomes of the activities of the business needs to be taken into consideration prior to putting them into action. On the other hand, the fourth proposition entails the cost relation to specific activities with the product or service being passed on to the customer. This proposition rests on the basis of the business not holding the expectation of complete activity financing that can be of social advantage although dangerous economically in which case the costs of sustaining the customer using increased product or service pricing as a relation to such activities (Whelan et al., 784; Franco, 1604).
Finally, the fifth proposition states that business organizations in addition to citizens hold the responsibility to participating in specific social challenges that are external to the normal scope of operation. As such the possession by a business with the expert knowledge of social challenge solving with the possible associated direction needs to be held in responsibility of providing assistance to the society (Whelan et al., 789). The organization or business entity will eventually gain high profits from the overall improvement of the society in which case the organization needs to share the citizen responsibility to the general improvement of society.
Relevance of the topic to managing staff
A pyramid approach to examining the concept of corporate social responsibility will reveal that it takes several factors into aspects such economic component, legal components, ethical components, philanthropic concepts which can also be described as responsibilities. These are arranged with the philanthropic responsibility at the top of the pyramid followed by ethics, legal responsibilities with the economic being the last. These components entail of several issues for instance philanthropic revolve around being a good corporate citizen that contributes resourcefully to the community so as to improve the quality of life. Ethical responsibility concerns being ethical, by doing right with justice and fairness so as to avoid harm. Legal responsibilities concern obeying the laws in society as they govern the scope and definitions of right and wrong; Economic responsibility entail being profitable as it is the foundation, upon which all other corporate social responsibility components rest (Whelan et al., 788).
Ethics and Social Responsibility as covered by U.S government regulations
The U.S federal government regulations concerning ethics and social responsibility arises from the fact the concept in an umbrella under which there are several concepts of social benefit as well as programs in which the private sector falls. The general notion being that social responsibility is a requirement by all business to hold as an ethical concern as well as a contribution to the economic development of while searching for improvement to the quality of living of families and communities in general (Whelan et al., 789; Parmar, 445).
As such government regulation will take the form of certification of business as well as their related programs of social responsibility as an independent provision of entities that are non profitable as certification by the government requires an organization to hold itself as being publically and socially responsible. The other form of regulation is the established standards for organizations in their social responsibility programs with these standards no existing as certifications as provisioned by the International Organization for Standardization (ISO) but rather as simplified recommendations to the social conduct in a responsible manner of the programs.
Furthermore, government regulation takes the form of corporation benefit statutes as an embedment of social responsibility in the article of incorporation of the business or organization from which to select the incorporation of such statutes.
Recommendations to management regarding corporate social responsibility programs
Within an organization the role of supervisors is to provide assistance to employees to enable then attain success on the job with the duties comprising of provision of clarity regarding their expectations (Whelan et al., 786). This in addition to provision of continued training as well as counseling with consistency and fairness in policy enforcement and procedures as well as objective monitored performance of work while maintaining safety and productivity in the workplace setting;
Communication as such is crucial aspects for supervision to be effective as supervisors are required to have clarity in communication with the needs of management expectations will standard performance on a regular basis. It should be noted that the supervisor is crucial within the organization especially regarding familiarity with the operations of the department as well as related policy, regulations and procedures with the perception of the impact of these aspects and not merely the basis matters. Furthermore, it is crucial for supervisors in the provision of continued training as well as employee assistance in both probationary and regulated terms as well as problem resolving in case they arise. Action that is disciplinary as such will be avoided with ease with identification of the problem and subsequent prompt action. For instance clarification can be provided by the supervisor in the form of additional instruction to the employee the moment the problem occurs while keeping in mind that human resource management requires departmental consultation regarding any problem that holds the outcomes of action that is disciplinary prior to the initiation of action (Ngobo, 502; Wong, 430).
In addition corporate social responsibility is a crucial component in business operations of a corporation as it has been shown in several sectors within corporation that decisions can focus on social responsibility and not the entire organization as previously assumed; Important areas of focus concerning corporate social responsibility that should be noted by management are environment, education, health matters and employment concerns (Whelan et al., 781; Griseri, 31). Furthermore, that corporate social responsibility can be looked at as a form of investment that brings investors, with their financial objectives ensures a certain state of well being within society.
Conclusion
The importance of corporate social responsibility as a topic in its methodical approaches provides benefit to executives that wish to reaffirm their responsibilities to their shareholders. This is in addition to competition among several groups with claims of legitimacy; as such she frames her argument of corporate social responsibility in a pyramid structure. Social responsibility has long been an ideology that has been of concern to humans and global citizens on the whole, in recent decades it has gained increased attention more so in the business world. This has also been in part, due to the increased engagement between governments and the business sector with its associated communities.
References
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Griseri, P. Nina, S. "Corporate social responsibility and business ethics". Journal of Business Ethics.2010:,27-41.
Ngobo, P,. Casta, J,. Ramond, O,." The relevance of customer satisfaction as a metric for financial analysis." Journal of the Academy of Marketing Science. 2011:450-502.
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