Issues Addressed by Westpac - Case Study Example

?CASE STUDY OF WESTPAC By Presented to Background The creation of shared values is the new approach in the market that is useful in defining the support for social responsibilities. Shared social values are different from the known corporate social responsibilities, with the main factors not being the creation of a social image, but supporting the public. The current set up in corporate social responsibility is the problem because it has a capitalistic approach. The approach is vital in the new age development of business. Shared values are different from the corporate social responsibility (CSR) because it focuses on innovation and support and not on financial support (Drucker, 2002, p. 78). Over the years, corporate social responsibility has been viewed as a financial burden for the company because it involves the use of money in the process. However, the current development of the shared value approach will not only solve the social problem but also help the companies overcome the various challenges existing in corporate responsibilities. Westpac bank is a powerful bank in Australia with the perfect approach in both the dealing with the social issue and also handling the problem of cost. Westpac has developed several approaches in the creation of shared values that have facilitated the success of the bank. The bank engages in other sectors that were initially viewed as not related to the banking industries. The bank has been involved on several fronts including carbon trading with the main goal of the approach to create a shared value with the society. The bank has managed to create an impact in the society using the new model of handling social issue. Issues addressed by Westpac In developing shared values by Westpac, three areas are identified by the bank to be the focus areas. The Bank’s approach depends on the ability, to handle the issues as well as develop partnerships that facilitate the development of the community, thereby reducing the cost of the corporate action, while encouraging participation. The three main areas of focus are community partnerships, employee involvement and capacity building (Crane and Matten, 2007, p. 98). The approaches involve the creation of strategies that ensure sustainability and society improvement. One sustainable product developed by the Bank is the creation of innovative products such as everyday banking through the creation of new Accounts focusing on several issues. The development of Sense Account, which received the 2010 Australian Banking and Finance Award for innovative Banking product of the year. The product targets helping the customer to budget and save. The development of the budget process is facilitated by the use of charts for expenditure and savings. The account offers assistance during financial difficulty such assistance when unemployed to customers who are financially committed. Additionally the products cover other banks such as the St George, BankSA and the Bank of Melbourne. The focus of the products is to deliver improvement on customer experience. The argument of Porter is true because the approach used in delivery of the Sense account has led to success for both the product as both a social product and companies focus product. The success of the Sense account is based on the ability to handle the problems of the society especially planning, budgeting, and financial assistance thus facilitates the development of the society (Noe, Hollenbeck, Gerhart, and Wright, 2012, p. 104). The society requires support and, if a company can borrow forms the nonprofit approach to develop success the better. Apart from the sense account, the bank is engaging in other sectors of the society such carbon trading. The engagement in carbon trading does not only help in conservation of the environment but provides an opportunity to support the community. The involvement in socially responsible investment strategies has helped in the creation of shared values in the community. The BT investment management offers social investment strategies covering both the ethical and sustainability issues of the society. Development of partnership with Many Rivers Microfinance has helped in shaping the community perception. Many Rivers Microfinance is a nonprofit organization with known reputation for support of the community programs. The partnership will facilitate the harmony in operation of the company as well as develop the necessary customers support for the activities developed by the Bank. The partnership with Many Rivers Microfinance involves the provision of access to mainstream banking through the offering of unsecured loans to the nonprofit organizations’ clients. The program facilitates society improvement thus leads to the creation of a shared value in the process. The development of the various programs in partnership with the government and other related organization improves the company’s image, while also offering an opportunity for customers to develop a positive perception with the company. The failure to develop positive rapport with the community leads to failure. The initial approach developed by the corporate leaders involved the offering of tokens to the community which include issues of sponsorships among other things. The ability to incorporate the society in the management of society’s problem is based on the ability to develop participative programs that ensure that the society is able, to develop positively through the partnerships (Porter, 2011, p. 98). The society in recent times wants more involvement in community issues, but the corporate social responsibility does not allow for community participation in the process. The CSR model involves the maximization of profits and the reduction of expenses. However, the current system has regulations on environmental sustainability, human rights regulation that makes corporate social responsibility unbearable for many companies. The development of shared values is the new approach that facilitates cost reduction while encouraging the development of community participation. The approach by Westpac is successful due to the development of shared values, which has increased customer participation in social issues thus reducing the cost of operation of the bank. The partnership with community based nonprofit organization leads to the development of better customer and community involvement in the process, thus; encouraging donation or contribution of the community towards the solving of social problems. The Westpac model has encouraged the development of positivity in the community despite the banks focus being on financial issues. The success witnessed is a product of shared goals and other corporate approach employed by the bank. Despite the success, of the various approaches, the considerable challenge that must be tackled is on the development of community participation in social issues (Mauzy, 2006, p. 65). Many corporate approaches are based on a wait and see model which are not satisfactory in the process leading to the development of a wide network of problems of implementation. Successful implementation is possible through the participation of the community in various corporate programs developed by the company. Therefore, the shared value approach has been successful for Westpac bank in spite of the restricted sector which is the finance department. Recommendation Westpac approach in the development of shared values has been successful despite engaging in minimal funding for the community programs. The situation is like that because it has developed strategies that include community participation in the social responsibility. The development t of shared values and a hybrid approach can not only develop the society, but improve social welfare. The development of the new approach in corporate issues will facilitate better management of social issues and facilitate the participation of the community. The development of the shared approach strategy will facilitate the development of better approaches in corporate responsibilities. However, Westpac needs to develop the necessary relationship with clients to facilitate programs such as the Sense account that is geared to supporting personal budgeting process. The ability to support personal planning is an outstanding success of the Sense Account making it both a profit and support program for the Bank. Conclusion The development of shared value is the new approach in the market that will facilitate the development of hybrid organization encompassing both profitability and social responsibility. The involvement of the society in the approach facilitates the development of innovative products and services that promote the societal welfare. The provision of better services and product through participative innovation facilitate the public image of the company while it may reduce the cost of funding in the corporate social responsibility. The increase in profitability is possible when innovation is included in the corporate social responsibility. The development of the various approaches in the society is dependent on the evaluation of the needs of the society. Westpac has been successful in the development of shared value. Bibliography Crane, A., and Matten, D. 2007., Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization. Oxford: Oxford University Press. Drucker, P. 2002., The discipline of innovation. Harvard Business Review, 95-98. Mauzy, J. 2006., Managing personal creativity, Design Management. Havard Business Review, 67-72. Noe, R., Hollenbeck, J., Gerhart, B., and Wright, P. 2012., Human Resource Management. Birmigham: McGraw-Hill Companies,Incorporated, . Porter, M. 2011., Creating Shared Value. Havard Business Review, 72-77. Read More