Corporate Social Responsibility (CSR) Strategies and Benefit

somatic Social certificate of indebtedness (CSR) Strategies and Benefit1.0 Chapter 2 Literature ReviewA literature look sternward of look into was carried out to put light into the explanation of Corporate Social state (CSR) as this differs from country to country and diverse authors demeanour modellight-emitting diode different definition for CSR. This makes the tuition of CSR to a great extent complex. Also factors influencing the strategicalalalal issues of CSR ar alike appraiseed. Electronic database is used such as emerald to bring appropriate articles.This review of literature is worked out on published research on CSR, CSR strategies and benefits. The first focal point is on the definition of CSR, whence the strategies of CSR in channel was reviewed and the benefits associated with the strategic deliver the superbsment of CSR. The important aim of this review is to sum up the studies in relation to the consolidation of CSR in its snapper product line to gain advantage to the hind end convention that receive the CSR and in like manner to the line of reasoning in the huge run to abode the moving in at a competitive advantage. Findings on milieu wargon also been taken into consideration.1.1 2.1 Theoretical Review1.1.1 Models, Concepts, FrameworksIn the book Corporate Social Responsibility by Crowther D and Aras G, 2008, Milton Friedman (1970) utter that at that place is maven and besides one friendly indebtedness of care- to use its resources and engage in activities designed to subjoin its moolah so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraudSo we loafer understand that according to Friedmans 1970 hypothesis the sole tariff of the disdain is to capitalise derive.According to Friedman (1970 cited in Galbreath 2009, p.111 ), it is the unanimous righteousness to meet the frugal require and that solo leads to the wel lbeing of the hostelry and it is the role of the government, service organizations, educational institution to meet the societal welf be.Galbreath, (2009) cited that later the globeation of the thesis of Friedman, (1970) thither was much research on the accessible responsibilities of the besotted. Galbreath, (2009) states that In the late 1970s, Carroll (1979) offered one of the first and perhaps still the most widely accepted nonionualisations of CSR (Matten and Crane, 2005).In Galbreath (2009), Carrolls (1979) model constructualises the responsibilities of the firm asthe economic responsibility to generate shekelsthe legal responsibility to comply by topical anaesthetic anaesthetic, state, federal, and relevant international lawsthe respectable responsibility to meet former(a) affectionate expectations, non written as law (e.g. avoiding harm or companionable injury, respecting object lesson rights of individuals, doing what is right, just, fair) andthe discretion ary responsibility to meet additional behaviours and activities that parliamentary procedure finds desirable (e.g. large- spunked initiatives such as contri thoing money to various kinds of genial or heathen enterprises).The live on concept applies to the Mauritian context where NGOs argon engaged in the philanthropic activities. They are funded by firms making acquire and 1% of the profit by and by prise is condition to the NGOs to look at the insecure groups in Mauritius , the other 1% goes to the contribution of computer programmes offered by government, (NEF, 2008).NEF,2008 cited that the economics needs of the firm are met to comply with CSR. The firm has to open 2% of its profit after tax in the CSR fund. If the firms make no profit then there is no contribution to CSR. This brings to the circular Mauritian modelIn Mauritius, the government uses the profit for the welfare of the parliamentary law.1.1.2 Activities not meeting the criteria of CSR in Mauritius The fo llowing activities do not fall under the definition of CSR IN Mauritius, NEF (2008) voice for religious activitiesContribution to activities discriminating on the creation of race, place of origin, political opinion, colour or creed.Contribution to Trade UnionsSponsorship for grocerying purposesContribution for political partiesShareholders and Senior mental faculty benefits (schemes benefiting staff and/ or their family members and shareholders holding more than 5% of shareholding)Staff welfare cost (including e.g. legitimate and proximo staff training costs),Activities which are against mercifuls unspoiledty and national interest.In Galbreath (2009), Friedmans (1970) complaisant responsibilities, stakeholder theory and corporate complaisant responsibility, Carroll (1979) are normative they give a description of what the dos and donts of the firm in terms of their societal responsibilities (Rodriguez et al., 2002)Katamba D and Gisch-Boie (2008) make a say with regards to CSR in Uganda a developing country. They stated that CSR is a new concept in Uganda and the study was carried out to know the perceptions of CSR, admittancees and needs of companies in the liaison of CSR. The CSR defined by caller-up managers in Uganda as stated by Katamba D and Gisch-Boie (2008) arewhen companies consider the interests of rules of order by winning responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stkaholders as well as the purlieu.how companies manage their contrast processes to produce on overall positive impact on ships company.considering all stakeholders while making business decisions that manage stakeholders relationshipsgiving back to ball club and cementing the bond of the fellowship to nightspot through demonstrating the caring heart of the companyKatamba D and Gisch-Boie (2008) do the observations that large companies in Uganda do not substantiate a CSR scheme and they send wordnot satisfy all the requests of communities and NGOs.The Government of Mauritius has put uped for the canonic programmes relating to socio economic festering, Health, leisure and sport, surroundings, education and training and catastrophe, (NEF, 2008).The NEF has an important role to forge to drive firms to CSR strategies. The Government of Mauritius stated in NEF (2008) has set up a guiding principle with the general purpose of directing registered companies to give 2% of their book profit to programmes contributing to the social and environmental suppuration of the country.NEF (2008) stated the target areas of the fund toSupport firms to administer their own agenda, resulting in the twofold get word aspect, that is, the economic, social and environmental development.Ease the involvement of the companies to sustain pull throughing canonic National Programmes applied by Companies, national agencies or NGOssupport a serviceable society to NGOs working with the approved national development program1.2 Empirical Review1.2.1 Applied Studies and FindingsResearch gapsIn Sidsel Grimstad (2011) pp. 73-74, Shrivastava and Hart (1994) suggested kilobyte politics ordain be among the powerful forces of economic, social, and political change, businesses and managerial theory have to change them drastically to hold environmental distress. In the alike(p) stem In Sidsel Grimstad (2011) pp. 73-74, stated that after more than ten years, Kallio and Nordberg (2006) there are still questions that have not been answered regarding firms and their link with the raw(a) environment. These questions are what is the organisations relationship with the vivid environment? Why does integration of concerns for the natural environment happen within organisations? Where does it happen? Who does it happen to? How does it happen? What are the consequences of an integration of the organisation and the natural environment? (Sidsel Grimstad 2011 stated by Kallio and Nordberg (2006 ))They also undercoat that while considerable empirical research had been make, there were few development of theory conbining organizational and management theories with natural environment.Sidsel Grimstad (2011) stated that few research has been carried out to assess how prolonged actions affects firms or clusters competitiveness and the air natural environment is bonded to the involved firms of organisations (businesses, government, non-profit, or others) day to day activities (Gladwin et al., 1995 Kallioand Nordberg, 2006). Little has been done to judge against framework, local nominal and informal institutions while looking at business-driven environmental action (Gjlberg, 2009 Halme et al., 2009 Hart, 1995 cited in Sidsel Grimstad (2011) )Sidsel Grimstad (2011) found from the above literature review comes up many knowledge gap. He states that more study examining how firms operates and implements environmental action, the insight of environmental action , the reason they are doing it, what they see as main factors for the environment and business to mutually develop and benefit each other, the mood they carry out environmental action, the way they organize and the short and long term consequences for the environment and society. Sidsel Grimstad (2011),More concept is required the forming of the relationships between the natural environment business organizations and competitive advantage. Sidsel Grimstad (2011) cited that More comparative research is required analysing how businesses have withenvironmental issues within different contexts and different nationalinstitutional frameworks.Sidsel Grimstad (2011) cited thatWhen go close with serious environmental issues, it would be expected that the way/mode and factor a business, a business cluster or society will respond to the environmental challenge will differ according to the countrys formal and informal institutions.Sidsel Grimstad (2011) stated that these matters would be more outstanding in areas where the natural environment and landscape encompasses basis for touristry as an additional schema for earning income for businesses based on culture.Sidsel Grimstad (2011) also found that.. it would be expected that agriculture based touristry businesses would have a vested interest in waiver beyond compliance with the environmental regulatory systems. In addition such clusters would also perceive the natural landscape as a obligatory for value-adding for their tourism businesses in the future and are therefore worth taking care of.Sidsel Grimstad (2011) found that the deuce countries chosen, Norway and Australia have clearly different situations and organizational frameworks when relations with environmental management in country-bred areas. He chose two business-driven green initiatives have been identified and there are still on-going research. Sidsel Grimstad (2011) cited that reThey are self-defined or self-organised clusters, in as such they do not follow administrative or geographical borders, but rather are based on a common business focus agriculture-based tourism in a geographical area where the borders have been defined by the business community itself through formal organisations such as local chambers of commerce.He also stated that they hold the definition of clusters given over by Porter (1998), that describes these geographic clusters of inter cogitate firms and institutions in a special(prenominal) field.Sidsel Grimstad (2011) also stated that the clusters include two suppliers of provider of inputs, work, and education( universities, training), and later leg of businesses centered on customers that both compete and work together.In Australia the associating organisation is a Chamber of Commerce in a wine tourism region, and in Norway is a farming of apple and tourism region, a shareholding firm has been set up with the objective of promoting continuing improvement in the area, (Sidsel Grimstad 2011) .In Norway, the area in agriculture has received much subsidy to cater for both self-sufficiency in substantive foods and secondly in sustaining the rural population. the subsidies in agriculture have been drastically reduced in the live on decade, but they have been turned towards subsidies for farm-based ecological protection and preservation. These have led to new ventures in tourism sector for a new value-adding strategy. The above extract is from (Sidsel Grimstad 2011).Sidsel Grimstad 2011 also found in his study that traditional farming has been drifted towards a mix of farming and agri-tourism, preceded by the principles of geo-tourism.In Sidsel Grimstad ( 2011) the definition of Geo-tourism is given by tourism that sustains or enhances the geographical character of a place its environment, culture, aesthetics, heritage, and the well-being of its residents (National Geographic Society, 2009).Sidsel Grimstad ( 2011) stated that small agricultutal sector tourism clusters ha ve been founded by the concepts of geo-tourism that they call landscape parks that are natural and cultural regions described by the natural landscape and by the identification of local population. The development of home agro and tourism have to undertaken in an sensitive wayTaking care of the environment that must be attractive to both local people and the tourist (Sidsel Grimstad, 2011).From the above extract this leads to the creating of strategies to look after the issues of sustaining and preserving environment. Mauritius being a tourism industry can give grandness to the environmental programs for maintaining and preserving it keeping in mind the problems that are the world is confront towards natural ecological change.1.3 2.3 Case StudiesAdded on17/04/11Volker Turk (2003) has worked in a musical composition e-business and CSR- the business case for the new economy. The paper looked at the major importee for corporations working in the ICT and e-business sector concerning environmental and social issues.Volker Trk (2003) substantial an essential finding from the research that is e-business is not entirely virtual but it is related to the use of natural resources.Volker Trk (2003), identified key factors influencing the ecological consequences of environmental ICTs and e-application. He identified them asMonitoring the environmental impacts of ICT and e-business, rejuvenation the hardware, shifting to e-services, enabling transport efficiencies, raising awareness and changing habits, key out and extent the (digital) responsibility, acknowledge the technologies limitations and perils, Improve sustainability and accountability along supply-chains.social responsibilities are different from social issues but closely linked (Galbreath 2009).The society have expectations on the firm and these are social responsibilities. These responsibilities are related to factors. These are social issues. These factors can have an effect on the ability of the firm to meet objectives , and can also affect the social responsibilities. This view has been support in the work of Galbreath (2009).ELABORATE HEREGalbreath (2009) states thatIn this sense, these definitions alleviate to describe what the firm side of the social tweet (Donaldson and Dunfee, 1994, 1999) between business and society consists of. On one hand, the formal social contract defines a firms verbalised responsibilities, including generating returns for shareholders, obeying laws and regulations, creating jobs, paying taxes, and honouring private contracts. On the other hand, the semiformal social contract reflects societys implicit expectations. Here, societys unspoken expectations of firms include responsibilities such as adherence to spherical labour and environmental standards (e.g. SA 8000, AA 1000, ISO 14031) that are not required by law, double bottom-line reporting, following industry norms and codes of conduct, fulfilling brand promises and contributing philanthropical ly to the community.Scholars have looked at the social issues concept, principally through the life-cycle approach (cited in Galbreath (2009), Lamertz et al., 2003). Although several definitions exist, a widely accepted definition in the life-cycle tradition describes social issues asSocial problems that may exist objectively but become issues requiring managerial attention when they are defined as being problematic to society or an institution within society by a group of actors or stakeholders capable of influencing either governmental action or company policy (Mahon and Waddock, 1992, p. 20 emphasis added).Galbreath (2009) expressed this view. The definition implies that social problems exist at the societal level (but not necessarily at the organizational level) and these problems are elevate to the status of a social issue by the actions of various actors, including stakeholders. However, such a definition does not address how these social problems and issues might be an oppo rtunity for the firm and thus, is problematic with respect to the concept of strategy.Galbreath (2001) cited thatsome firms signal that CSR is a fundamental purpose charge of their existence. As part of its mission, The dead body Shop makes cosmetics that do not hurt animals. Here, The Body Shop has addressed a social issue animal inclemency through the very core of their business developing the highest quality, innovative, effective and safe cosmetic products.A bank with a heartThe Mauritian bank, Mauritius commercial-grade Bank (MCB) is involved in Corporate Social Responsibility to practise the communities by not only by financing of projects but also to frame of reference and sustain schemes for social, environmental and economic welfare of the community. The MCB Group presents 2% of its bok lolly annually to the MCP Forward Foundation . This extract is from MCB Ltd,2010.Another manikin of Corporate Social Responsibility in a Mauritian company is theIBL Children(Schum peter, 1934 Nelson and Winter, 1982 Jacobson, 1992) economic growth can be attained through innovation. (Schumpeter, 1934 Jacobson, 1992 hill and Deeds, 1996 Chan Kim and Mauborgne, 2004) presented the views below. Innovation can be an opportunity to meet social needs and deal with social issues instead of considering them as a threat. The knowledge acquired from the target markets, target customer needs and the unmet social needs and/or social issues directly from the market, can be used to explore the opportunity to happen new markets and gain competitive advantage. This can be done by introducing new customer offerings, developing new processes or creating new market segments.Gabreath , 2009 cited that Corporate managers admit that CSR is a springy reflection for motivating achievement. alone they acknowledge to be under pressure to anticipate about the question of unmet social needs or social matters that will affect their business or how to develop strategies to cater for these problems (Galbreath, 2009) . Galbreath, 2009 said in his findings that much has been on paper to recommend that CSR is important for competitive success, but efforts have been paramount on conceptual and theoretical advancements and empirical tests between CSR and firm accomplishment. Galbreath, 2009 came to the refinement that this causes a breach regarding CSR and strategy. Galbreath, 2009 citedIf an assumption is made that CSR is important to competitiveness, and if strategy serves as a foundation for a business firms creation, while establishing its position in the market, its competitiveness and its on-going existence, then placing CSR within the context of strategy seems vital.Galbreath, 2009 first importee was that CSR should not be regarded only in terms of the duties organizations have toward society or to whom they are accountable.Galbreath, 2009 cited thatNormatively postulating, for example, that firms have an economic responsibility to generate profits or a leg al responsibility to obey appropriate laws or that firms have a responsibility to meet the needs of various stakeholder groups (and who those groups are) does not describe how they can do so in a strategic manner.Galbreath, 2009 suggested that to know CSR strategically, unmet social desires and social matters and also the firms responsibilities toward society, these have to be considered individually. This is essential to tackle CSR more accurately within the underlying elements of strategy (Galbreath,2009). Galbreath, 2009 implies and questionsto what dot does CSR have to be built into strategy before it can be considered strategic? During its existence, the firm has to frequently face with different opportunities and threats and decisions are made to deal with them (Galbreath, 2009).According to Galbreath, 2009 there are six-dimensions of strategyfirm missionstrategic issuesmarketscustomer needsresources andcompetitive advantage.Galbreath, 2009 says that at any coiffe one facet of strategy of the six-dimensions might be more vital than others. In Galbreath, 2009 for some scholars strategic CSR deals with contributing slack resources (profit spending) to the needs of society and community that are related to objectives and strategy of the organisation such as philanthropy, sponsorships and cause-related marketing (Mullen, 1997 Lantos, 2002 Porter and Kramer, 2002). Galbreath, 2009 observed that strategically, this is a limited view and is mainly related to the discretionary (philanthropic) component of Carrolls (1979) theory of CSR. Galbreath, 2009 demonstrated in his paper that CSR is not an organizational occurrence strategically limited to a curtail aspect within the organization. He states that while taking corporate responsibilities, unmet social desires and social matters into account, synergies develop that are essential for several dimensions of strategy. In Galbreath, 2009 he stated an example while the economic responsibility to produce profits c onstitutes part of the firms formal social contract, by exploring unmet social needs and social issues through strategy dimensions such as markets served, customer needs and resources required to compete, a firm not only can address social opportunities that generate profits (thereby meeting its economic responsibility to shareholders), but can offer societal benefits as well (Burke and Logsdon, 1996 Husted and Salazar, 2006).Galbreath (2009) found from his study that CSR cannot only be philanthropic or an indebtedness towards ethics, that is code of conduct CSR can be carried out within six elements of corporate strategy, adding up to good organisation practice, profitable to the economy and to the wellbeing of society (Galbreath 2009).Galbreath 2009, concluded that firms contribute economically to the society and profits making is a social responsibility (Carroll, 1979 Henderson, 2005). But in the present ambience, social matters are cropping up on firms to the extent that CSR se ems to be the new battlefield for competitive achievement (Porter and Kramer, 2006 cited in Galbreath 2009). According to the guidelines, NEF, 2008 it can be extracted that the Government of Mauritius is mainly dealing with vulnerable groups as philanthropic activities to eradicate poverty rather than using CSR as an competive edge for the business. But for business perspectives in Mauritius, firms can deal with the CSR activities dealt as per the government program but at the same term figure a strong long term competitive advantage by building good account for the company and at the same time deal with societal issues.Galbreath, 2009 concluded that if the statement is true then firms do not have to meet the interest of shareholders but also of society at large. Galbreath (2009) sated that strategy takes on significant meaning not only with respect to fulfilling social responsibilities and the development of firms, but also with respect to the development and sustainability of s ociety/nations (Raimond, 1996 Rodriguez et al., 2002).Galbreath, (2009) made an interesting conclusion companies who have a broader concord of their social responsibilities and who starts to investigate further on how they can build CSR into strategy at a more competitive edge in the future benefiting the shareholders and also the society at large.Galbrath (2009), to deal with CSR more strategically, the paper made an argument that organizations should consider six strategy dimensionsfirm mission, strategic issues, markets, customer needs, resources and competitive advantage.Galbreath (2009) stated that strategy is about recognising matters that have an influence on a organisations capacity to attain its mission, so goods/services can be given to achieve markets needs providing through expensive resource construction to build and maintain competitive advantage. When CSR is thought about in these aspects it provides a way to methodically delve into means where social responsibil ities can be constructed into strategy (Galbreath, 2009). If CSR is not done this way, companies take the risk of defining CSR as codes of ethics, triple bottom line reports and public relations campaigns, (Galbreath 2009).Galbreath(2009) cited thatSuch approaches are too limited, too defensive and are too disconnected from strategy.Nur Diana Hidayati, (2011) , showed in the case study that there is elevated dedication from the four companies she studied to catty out CSR programs and company moral values. The companies attempt to deal with the triple bottom line issues,(Nur Diana Hidayati,2011). Nur Diana Hidayati, (2011, p104), found in the case study that two consumer goods companies (Unilever Indonesia and Sari Husada) and one manufacturing company (Astra International) conduct CSR programs that are both related and unrelated to their core businesses while a mining company (Aneka Tambang) tends to conduct CSR programs that are unrelated to its core business.The other finding from the case study is that both programs related to CSR and not related to CSR are ways for the companies to go for sustainable development, Nur Diana Hidayati, (2011, p104),This leads to carry out a study in the Mauritian context of the competitive advantage dictated while incorporating Corporate Social Responsibility as a strategic management in the business.Anonymous, nd from the Emerald Group Publishing stated that it is operose to manage Corportae Social Responsibility issue if the firm you are footrace a firm of huge size. Senior management are more conscious that the firm is presumed to put forward some kind of advantages to the wider world, (Anonymous, nd). newspaper publisher articles, academic papers, the activities of their peers and the public all tell them so. Many executives of firms are dying(predicate) that their firm is not looked as making contributions morally to the society and to the environment as their day to day activities then they can lose their reputation and customers, (anonymous, 2008).Lance Moir the basic idea of corporate social responsibility is that business and society are interwoven rather than distinct entities.Business depends on society to run and it is using natural resources may be at the detriment of the environment. Though it is contributing to the economic development of the country or society, it has other duties to fulfil to contribute part of what it has gained during the business process by providing Corporate Social Responsibility.Holmes (1976), in a study of executive attitudes to social responsibility, finds that the strongest response was that in addition to making a profit, business should help to solve social problems whether or not business helps to create those problems til now if there is probably no short-run or long-run profit potential. This applies to the Mauritian context where the contribution is enforced by 2% contribution after profit although it is given as tax. But how far the business person is agreeable to this is to be studied through the research questionnaire.Proponents of CSR film that it is in the enlightened self-interest of business to undertake various forms of CSR. The forms of business benefit that might accrue would include enhanced reputation and greater employee loyalty and retention. We can identify this approach in some of the current approaches by business.So, the introductory section of the recent report by the existence Business Council for sustainable Development on Corporate Social Responsibility (WBCSD, 1999) used phrases such as business benefits, could destroy shareholder value, tick off risks, identify market opportunities, ameliorate reputation and maintaining public support.CSR Europes approach is that business benefits from being more socially prudent and that this can help to build sales, the workforce and trust in the company as a whole. The objective is to build sustainable growth for business in a responsible manner.Frederick (1994) identifies the development in the understanding of CSR up to 1970 as an examination ofcorporations obligation to work for social betterment and refers to this as CSR1. However, around 1970 he notes a move to corporate social responsiveness, which he calls CSR2. Frederick (1994), identifies corporate social responsiveness as the capacity of a corporation to respond to social pressures.(Moir L. 2001) In effect the move from CSR1 to CSR2 reflects a move from a philosophical approach to one that focuses on managerial action. Lately, Frederick (1986) has developed this analysis to include a more ethical base to managerial decision taking in the form of corporate social rectitude and terms this CSR3. In this development, Frederick claims that the study of business and society needs an ethical anchor topermit a systematic critique of businesss impact upon human consciousness, human community and human continuity.Frederick (1986), asserts that whilst CSR1 was normative, it was hesitant and that CSR2 led to non-normative enquiry. Thus the requirement for a moral basis provides a normative foundation for managers to take decisions in the area of CSR. As part of a normative manifesto, he proposes that theThe World Business Council for Sustainable Development (1999) defines CSR asthe ethical behavior of a company towards society . . . management acting responsibly in its relationships with other stakeholders who have a legitimate interest in the business, and CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.Examples cited in Moir L, 2002 are from individual companies in the area of CSR reinforcing stakeholder analysisJohnson Johnsonthe companys responsibilities to be fair and honest, trustworthy and respectful, in dealing with all our constituents (Johnson Johnson, 2000).Volkswagen (2000)ado pt a position which builds both shareholder value and workholder value in order to deliver sustainable growth for the future. overreachWe all need to assess the impact our business makes on society and ensure that we balance the economic, environmental and social aspects of everything we do (Moody-Stuart, 1999).Apart from the triple bottom line, I think business should feel responsible and contribute to the social growth and go beyond the expectation of society and amalgamate CSR in the way business is