Introduction
Corporate social responsibility (CSR) entails the practices that are undertaken by the organization as a way of giving back to the society b solving the social or environmental issue. For instance, the business may fund projects in the community such as schools programs and clean water projects. Additionally, the corporations may undertake climate change activities such as planting trees and reducing emissions as well as funding for research for common good such as Ebola and cancer programs. Implied, the corporations bet on these projects to create customer awareness and as a way to win their loyalty in the long-term. As such, the consumer choice may take into account the contribution made by the corporation for the common good. Notably, the companies that are notorious for releasing GHG may experience low sales volume in comparison to their competitors due to market for virtues.
Therefore, the report will analyze two initiatives that aim for the common good of the society, control of toxic emission and improving working condition. In the cases, the study will conduct research as well as analyze them using the in Auld, Bork, and Steurer. Afterward, it will outline the benefits accruing to the company and the wide society because of the two initiatives.
Control of toxic emission
There are huge efforts by both the manufacturers and the producers to cut greenhouse gasses emission into the atmosphere. Notably, carbon is the most common greenhouse gas emitted by human activities. Indeed, the gas consists of approximated 82% of the entire greenhouse gasses produced by various human activities. However, carbon is naturally available in the atmosphere, and human has just disrupted its cycle. Specifically, human add more to the environment through combustion of fossil fuel as well as reducing its absorption rate through the unsustainable clearing of the forest. This leads to accumulation of carbon, which causes climatic changes. Notably, the gas traps heat near the earth surface that result to desertification on topics and floods due to melting of ice in the cold regions. Ultimately, it reduces food production due to flooding and desertification, which causes food crises among other human problems. The risks reduction and business case drive the companies to control their emissions and rectify the prevailing problems due to the previous emission through the use of efficient technology and use of green energy among other toxic emission control techniques. It is important to note that control of toxic emission falls under the class of Auld because it is a new corporate social responsibility. More so, the approach solves the environment problem through the social responsibility which contravenes the traditional view that businesses are only interested in making profits.
Benefits of toxic emission control
The initiative will yield many benefits to both the company undertaking it and the immediate community, government and the entire society in the long-run. In fact, the program will save the human race from its self as illustrated in the discussion below.
Benefits to the company
The company will enjoy “Low Hanging Fruit” since it will cut the operation cost while participating in SR. For instance, installation of energy efficient technology will lower the volume of the GHG emissions by the manufacturers and the producers. Consequently, this will lower the consumption of fuel and cut the electricity bills. Clearly, this is a business case for doing good leads to doing well regarding costs am prices of products.
The market for virtue will increase the market share and growth of the firm. For instance, there are clients willing to but from SR firms, which increases sales revenue and the consumers' loyalty due to the awareness created by taking part in the control of toxic emission through the participation in environmental control activities. Still, supporting group social events that look after the environment through advocacy of carbon reduction strengthens the bond between the consumers and the company, hence, increasing the sales and popularity of the company's brand. This relationship is also important in increasing the market share of the company and its growth due to the increased sales and popularity among the consumers.
The companies save on the marketing and promotion expenses because of the consequential awareness associated with the CSR activities. Notably, the good press and recognition by the state for their efforts in conserving the environment leads to free publicity. As such, the spending on the marketing becomes lower and the saved resources aid in product development among other undertakings in the organization.
Finally, the market for virtues attracts employees, investors and supplier accepting to less pay and reduced returns from SR firms. This presents the business with benefits from increased business opportunities and talented employees to its workforce. Still, talented employees from the competitors with interests in making a positive impact in the environment will apply for jobs in the SR firms. In this case, the best way to find the real benefits is through determination of the incremental sales and productivity before and after the CSR. Besides, the success of the initiative depends on the coverage and the outcome of the program.
Benefits to the government and the entire community
Apart from the benefits realized by the company, there are other direct and indirect benefits to other stakeholders. It reduces harmful effects due to carbon emissions in the environment. Particularly, there is an increment in rainfall due to large forest coverage and prevalence of clean air. Moreover, the flooding that occurs due to ice melting will go down, and those living in low-level areas near the coastlines will not move to higher areas.
Additionally, the government budget allocation on the environment control will go down since corporation will cover sizable part in the environmental initiative. As such, more resources will be available for development projects. This will lead to high savings and investments as well as more job opportunities for the unemployed.
CSR will also result in low products' prices in the long-run because of reduced advertisement and the promotion expenses. As such, the consumer will enjoy favorable prices for the products. Additionally, it increases the variety of products due to a large number of companies participating in the CSR activities. Therefore, customers will choose from a range of sellers and products. In this case, the most precise way to determine the success of the CSR in the community is to find price index, the emission rate and other parameters that will show the marginal effect. Besides, the success of the initiative will increase if the number of companies participating in the environmental CSR is large.
Improving working conditions
It is a common problem to encounter cases of unfair treatment of female or underpayment of the minorities as well as poor working conditions in multinational branches in the second and third world countries. As such, the case will look at CSR regarding fair treatment as both a business case and as conformance to the rule and regulations governing the labor market in a country. Primary, businesses are only involved in CSR given that they will do well by doing good. Therefore, the government needs to exercise labor regulations to make sure that the employees get fair treatment and good working environment that protects their health and safety at workplace (Weber, P. 324-39). For instance, U.S. government ended the Sweatshops during the post-era war through labor law enforcement to make sure because of poor working terms and conditions. The government may ban some practices or introduce minimum wages to ensure that the employees are fairly compensated. However, this may lead to retrenchment of the workers to lower the labor costs in the corporations, which would adversely affect the workers. As such, the government and the corporations come together to instill efficiency in the labor market. Clearly, CSR in the labor market falls under the class of the Steurer since the role of government in the program undertaken by the business organization. The role of government in the economy is beneficial as demonstrated in this typology and there are positive impacts such as fair treatment and ensuring the safety of workers. This reduces the negative effects brought by the failures in the market economy (Polanyi, p.76).
Advantages of the CSR with government cooperation
The government role in the CSR affords both the company and the wider society many advantages due to labor and wage law enforcement well as protection of human rights as discussed below.
Company
The company cooperation with the government will increase conformance with the fair pay and diversity equality in employment opportunities, promotion, and compensation among other treatments in the company. Besides, there are reports published about the best company to work for. The good press aids in the creation of business awareness which promotes our brand to a large audience. Still, this lowers the marketing expenses due to the publicity created by the compliance with the set rules. Consequently, it improves the level of sales revenue given by the new customers who are conscious to the CSR in the company. This will also improve the customer loyalty in the firm thus weakening the competitors' force.
The program will impact positively on the employees in the company in several ways. In the first case, the employees will become more responsible because their employer is also responsible regarding equality among all the workers regardless of their diversity. Likewise, it will increase the employees' growth and perception for common good. Therefore, the employees will feel obliged to go a mile further to help the client. Clearly, the values gained from the CSR activities will trickle down to the employees in the company and later applied in the daily routine. Ultimately, the output per worker will improve due to the CSR. It is important to note that increasing the pay scale would lead to an increment in prices of the products supplied by the firm. Thus, an increase in labor productivity and efficiency will keep the products' prices low and wages fair.
Finally, violations of the wage laws attract lawsuits and antagonism from the labor union which the employees are members. Lawsuits cost money and lower the morale of the employees due to unfairness and harassment perpetrated by the employers. As such, the firms should go beyond compliance in treating minority well and in implementing wage laws. This will lower the risks of lawsuits, scandals, and prosecutions that adversely affect the organization brand. Thus, applying the wage laws in the developing nations in the case of the multinational company would lower risks and extra costs incurred in lawsuits. For instance, the poor working conditions and employment of children in such countries as Burkina Faso cotton field attract bad reputation and lawsuits from NGO.
Benefits to the government wider community
The government and society reap many benefits from safe and fair working conditions from the cooperation between the administration and the business community in the CSR. The immediate benefits go to the employees who get fair remuneration and health and safety due to protection by the wage force as well as implementation by the corporations. For instance, a death that occurred in 12 \\September: Ali Enterprises, Karachi Pakistan– 300 killed was preventable through the implementation of the safe working environment. Additionally, the ordeal that happened on 24 November: Tazreen Fashion, Dacca Bangladesh (Walmart supplier)—112 killed is indicative of the lives that can be saved through implementation and conformance with the wage and labor law. Therefore, collaborative efforts between the government and the corporations will lead a safe life, cut health expenses and increase the employees' safety. For instance, "Canadian proposed Act to Prohibit Sweatshop Labor Goods private member’s bill” will make sure the employers do not exploit the workers through poor payment (Scott and Gordon, p.547-577).
Additionally, implementations of fair payment and good working conditions will lead have positive effects on the entire industry. The action of few large firms has significant effects on other firms in the industry. As such, the wages will improve in the entire industry, and the level of competition will also improve. Consequently, the competition will lead to fair product prices, quality products and provision of variety products in a specific industry. In this case, there is the maximization of the welfare of the consumers and the producers due to the cooperation between the state and the producers.
Nonetheless, the implementation of the wage and labor regulation is limited to the developed countries. However, the rule does not apply in the developing world since the governments are in fear of losing the multinational corporations. Indeed, this was the case with the Sweatshops. Additionally, the multinational companies hire the firms auditing them thus compromises the labor and wage reports' credibility. The employers may also intimidate their employees to have them lie during the auditing exercise. Clearly, the social CSR is susceptible to manipulation for political gains by the politicians, and the interest groups influence the wage bills to score political and business gains. As such, the economic system relies on non-economic motives such as politics and self-interest (Polanyi, p.46). Therefore, to determine the success of this CSR, there is a need to involve independent bodies to audit the firms. Moreover, to maximize the benefits the government has to make and enforce working labor and wage regulation. Additionally, the companies have to implement the set regulations.
Conclusion
The findings of the report show that both the Auld and Steurer typology of CSR benefit the wider community in meeting social and environment problems. Additionally, the two help the growth and development of the economy are motivated by a business case and risks reductions. However, while the Auld typology does not aim at political gain, the Steurer typology serves as a strategic plan by the interest groups in business and the politicians to score political and investments gains.
Works Cited
Polanyi, Karl. The Self-Regulating' Market and the Fictitious' Commodities': Labor, Land, and Money. Boston: Beacon Press, 1957. Print.
Scott, John and Gordon Marshall. A Dictionary of Sociology. 3rd ed. Oxford: Oxford University Press, 2012
Weber, Max. ‘The Types of Authority and Imperative Co-ordination’ from The Theory of Social and Economic Organization, A. M. Henderson and Talcott Parsons, trans. Glencoe, IL: Free Press, 1947. Pp. 324-39
