Introduction
Corporate Social Responsibility (CSR) has always been a big issue for the last several decades. It has been established from Europe and the U.S. consecutively over series of reckless actions from Multi-National Corporations (MNCs). Since the start of the new notion, international firms have upgraded their ethical regulations and code of conducts so as to demonstrate to their shareholders that they are a liable and responsible business unit and that the profit availed to the stakeholders are not from unethical activities (Heinz, 2014, p.49). CSR entails multiple stakeholders, including employees, shareholders, media suppliers, consumers, the general public and even the Non-Governmental Organizations.
CSR is defined differently by several scholars, for instance BANERJEE (2007) and BEAL (2014) define it as a business practice involving corporate participation in the initiatives that are beneficial to the society. It has developed to become more significant as the progressive companies set in sustainability into the core business activities with the aim of creating some shared value for both the business and the society (LEE & KOTLER, 2013, p.51). CSR is more about how a particular organizations makes cash rather than how it spends their cash.
Composition of the Essay
This essay is going to focus on a very interesting corporate social responsibility that is been under taken by Bayer German’s Multinational company. We will analyze the strengths and weaknesses that the current CRS has. The essay will also propose a different CRS policy from the existing one. Corporate Responsibility theories will be used to support the recommendation of changes in the policy (Heinz, 2014, p.47).
This essay, however, will not include the details involving the amount of money that the employees receive as salary. This is because the issue is a bit personal and by the fact that the company has not been in any controversy with regards to the employee’s rewards, there lack too much importance to cover the issue.
Company Background Information
Bayer German Chemical and Pharmaceutical Company is a leading multinational innovator in several areas, with more than 289 global subsidiaries in healthcare, synthetic materials, agriculture and business solutions. . The company was founded in 1863. Its headquarters are in Leverkusen, Germany (LEE & KOTLER, 2013, p.71). The company provides products such as veterinary drugs, women health products, general medicines, specialty medicines, over –the counter drugs, diabetes care, plant biotechnology and diabetes care among others (Heinz, 2014, p.52). The company collects revenue that amounts to approximately € 42.23 billion an year.
The Company does the following in terms of CSR:
Bayer Material Science produces and manufactures high-technology polymers, which are utilized in construction and automotive industries, textiles and footwear to mention but a few.
Bayer Health Care that is fixated on nonprescription medications, pharmaceuticals and medical devices.
Bayer Business Services and Technology established to support Bayer’s restructuring of Subsidiaries from North America. These include; IT, Business planning, infrastructure support and Accounting.
Bayer CROP Science focusing on pest control and crop protection
Figure representing the Social Responsibility of Bayer Company:
Strengths of the Corporate Social Responsibility
Bayer, even though it is a chemical company, it has undertaken a CSR initiative that focuses on improving the society. Some of the strengths of the CSR linking to Bayer Company entailed measures like the zero-emission offices, industrial structures, and development of stress-tolerant crops which help in elevating the effective utilization of plants as biofuels (MULLERAT & BRENNAN, 2011, p.35). Additionally, the Bayer Climate Check is significant in optimizing the production processes.
Several technologies have been utilized at the Bayer Integrated Site to attain energy efficient and environmentally responsible production, particularly as the Bayer Climate Check process was introduced within Germany (Pearce & Robinson, 2013, p.64).
Another significant strength relates to the company being a leading multinational enterprise in sustainable development because of its knowledge in low carbon emissions. Therefore, this has greatly contributed to environmental conservation (VISSER, 2010, p.47). Additionally, Bayer has been able to integrate a group-wide process capable of reducing Carbon emissions.
Finally, Bayer Company signed a deal with India’s Bluestar Corporation to license its technical electrolysis that has the capacity to eliminate more than 15 million tons of Carbon on a yearly basis when utilized in India.
Weaknesses of the Corporate Social Responsibility
For Bayer Company, Social corporate responsibility was only objected at ensuring sustainability of the society or the other interested parties (BEAL, 2014). One of the weaknesses of CSR to Bayer was linked to the fact that the society was benefiting greatly while the company was making minimal profits. The stakeholders were getting fewer returns from their investments and as a result of the many challenges coming as a result of the worsening climatic conditions, and the poor crop production due to infestation with crop pests (Pearce & Robinson, 2013, p.63). In summary, we can say the aim of the CSR is to make money and not to spend money. Bayer does the reverse of this objective and thus is the major weakness.
Proposed Corporate Social Responsibility
The CSR Strategy that I propose for Bayer Company relates to initiating measures or steps significant enough to allow the company make profit (make money) through its deals and minimize the spending (cash outflow) (Pearce & Robinson, 2013, p.63). This particular CSR strategy can be referred to as “wise investment”. The accompaniments of my proposal entail giving incentives to the employees, rewarding hardworking personnel and minimizing expenditure.
The company should form and spearhead a CSR policy that restricts the amounts used in communal involvements (Heinz, 2014, p.42). Additionally, it will be able to promote business activities that minimize the business risks and innovative strength that opens up fresh opportunities for the company and allows it to produce ecological, economic and social gains.
The CSR proposal would entail the company being appraised about their roles on the environs, being so the company: has to support environmental preservation projects that will enable them to ease the bad environmental use, decide on the particular confines and frontiers that it has to set concerning to their CSR, and also to focus on the Company profitability and proceed to sustain the CSR often more than the welfare of the stakeholders. Some of the mutual CSR alternatives for Bayer Company would include:
Firing the underworking employees
Training the workers of the advantages of CSR
Educating the employees on the benefits of ensuring that they make more money instead of spending more.
Therefore, to ensure the CSR Strategy is effective, the executives at Bayer Company should do the following:
Define what each of them contribute to the success of the company
Know and understand the stakeholders
Apply world-class and exclusive management
Engage radically in discussing each element of the CSR
Conclusion
According to the proposed CSR, it is eminent that the strategy concentrates on the limiting downside. However, formation of CSR in organizations has always been a great challenge since most executives see it only as an action in protecting company reputations –to get away with bad behaviors elsewhere (VISSER, 2010, p.47). Operative outside relation in much more than that: it can help to bring in more clients, encourage employees, and win government favors.
The success of an organization relies on the connection between the outside world- potential clients, regulators, activists, staff and even legislators. Decisions made at all company levels, from boardroom to the shop floor, impacts the relationship. For Bayer Company to make extensive profit, decision making in all sectors must take account of those impacts (Pearce & Robinson, 2013, p.67). External relations cannot be separated from daily business; it must include daily business.
Bibliography
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BEAL, B. D. (2014). Corporate social responsibility: definition, core issues, and recent developments. Los Angeles [etc.], Sage
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Heinz, S. (2014). Creating a business plan: Expert solutions to everyday challenges. Havard, : Harvard Business Press.
LEE, N., & KOTLER, P. (2013). Corporate social responsibility doing the most good for your company and your cause. Hoboken, N.J., Wiley. http://rbdigital.oneclickdigital.com
MULLERAT, R., & BRENNAN, D. (2011). Corporate social responsibility: the corporate governance of the 21st century. Alphen aan den Rijn, Kluwer Law International.
Pearce, J. A., & Robinson, R. B. (2013). Strategic management: Planning for domestic & global competition (13th ed.). New York, NY: McGraw-Hill.
VISSER, W. (2010). The A to Z of corporate social responsibility. Chichester, West Sussex, U.K., Wiley. http://search.credoreference.com/content/title/wileyazcsr
