Corporate Social Responsibility in Action - Article Example

Corporate Social Responsibility in Action "Social obligation is much bigger than supporting worthy causes. It includes anything that impacts peopleand the quality of their lives." William Ford Jr. Corporate social responsibility is fast becoming one of the most crucial and inevitable aspects of corporate activities in recent times. Companies worldwide are consciously developing and implementing strategies to ensure best practices. Thus what was initially touted as a mere management fad has fast transformed into an inherent and inseparable element of businesses today (Guthey, Langer, & Morsing, 20061). The benefits of corporate social responsibility are manifold; both – to the organizations as well as to the society at large. Some such benefits of CSR with regard to a few select organizations are discussed hereunder. 1. Kellogg “We are a company of dedicated people making quality products for a healthier world” W. K. Kellogg Kellogg has had a rich history of corporate social responsibility which is designed to address the challenges posed by the dynamic external environment. The company has been involved in a wide range of activities and initiatives which are aimed at enhancing the quality of life both within and beyond the organization. In terms of activities internal to the organization, Kellogg encourages employee volunteerism, promotes diversity at work place and ensures a healthy and safe workplace. It ensures provision and sale of nutritious product in a bid to promote healthy living for all its customers. Figure 1: Source: Kellogg Company As a part of its CSR initiatives Kellogg contributes to various institutions which promote healthy living and food consumption among its customers. This includes contribution of funds to YMCAs Activate America campaign, Action for Healthy Kids initiative which is involved in reducing obesity among kids; the Kelloggs Swim Active program which provides swimming facilities to youngsters in the UK, as part of its mission to promote healthy lifestyles; the Global FoodBanking Network which is actively involved in providing hunger-relief to various countries across the world etc., among many others. The motto of the company indicates a strong social commitment as an inherent aspect of its trade, a tradition which the management has followed since over a hundred years. Its dedicated efforts to ensure a safe and healthy environment for its workforce, promotion of equality and diversity at workplace, a dedicated commitment to conserve and protect natural resources for promoting sustainable growth; and a broad social goal of ensuring well being of the community at large, as a part of its corporate social responsibility strategy, helped the company gain widespread acclaim and support. It helped the company in creating a positive reputation in the market, and in generating goodwill among its investors. The company was named as one of the Worlds Most Admired Companies, and ranked 5th by Fortune in the global consumer food products industry. It was also named as Americas Most Reputable Companies, whereby it was ranked 5th overall according to the latest (2011) rankings. Its commitment to ensure a positive working environment for its employees as a part of its CSR strategy earned it a place in the "2011 Best Places to work for LGBT Equality" by the Human Rights Campaign. Furthermore its philanthropic activities were widely recognized resulting in the prestigious United Ways Spirit of America Award. The fact that lifestyle diseases such as diabetes and obesity, being the most common, are on the rise in present times, is undeniable. Statistic suggests that significant proportion of population in the developed world is obese due to unhealthy lifestyles and eating habits. Kellogg as a food manufacturing company incorporated and adopted various key strategies to address such challenges and sought to reduce sugar content in its food products. As a part of this move it successfully achieved a 15 per cent reduction in one of its most popular food products - the Coco Pops cerreal in the UK. It also helped in reducing sodium content in various popular cereals marketed across various countries including Europe and Canada, thus gaining widespread public confidence in the brand. Furthermore the company is also actively involved in dedicated efforts to reduce calorie intake among its consumers through a series of programs and campaigns directed at the general public, by way of an industry-led consumer education campaign. It has also established partnership with prestigious health institutions such as Health Canada as a part of its nutrition labeling education initiative. Such dedicated efforts to ensure healthy eating among its consumers and for the society at large, has helped the company in earning the title of "Most Trusted Brand of Breakfast Cereal" for the year 2010 in a recent survey carried out in Canada. It was ranked second, in the 2010 Corporate Reputation Survey carried out by a marketing magazine in Canada. The survey was based on companies which commanded a high corporate reputation among its consumers. Kellogg has adhered to industry best practices with regard to environment protection by incorporating sustainable practices as an integral part of its CSR. It is recognized as one of the first companies worldwide to ever submit a water usage data to Water Disclosure - a new global data repository; thus indicating its strong commitment to environmental protection. Consumers today are highly aware and concerned about issues related to sustainable practices and environmental protection. Organizations such as GreenPeace have raised awareness and held various companies accountable for causing damage to the environment, ruining its corporate reputation and credibility in the industry, in the process. Hence, it is of utmost significance for companies to ensure environmental protection, implement safe and sustainable practices within the organization, and make persistent efforts to reduce its carbon footprint. Such efforts are known to increase consumer confidence in the company, resulting in a better brand reputation and a wider customer base, and ultimately higher profits for the companies concerned. Source: http://www.kelloggcompany.com/social.aspx?id=56 Total word count - 840 2. General Electric “GE seeks to advance human rights by leading by example - through our interactions with customers and suppliers, the products we offer and our relationships with communities and governments. Given our size and reach, this is a massive undertaking. That is why we remain steadily committed to upholding the human rights values embedded within our integrity policy, The Spirit & The Letter, and our Statement of Principles on Human Rights. [...] GE, as a business enterprise, promotes the advancement of fundamental human rights. We support the principles contained in the Universal Declaration on Human Rights (UDHR), mindful that it is primarily addressed to nations but understanding that business has an important role to play.” The above paragraph summarizes GE’s attitude towards corporate social responsibility. CSR like various top multinational companies worldwide is a key priority at GE, which is reflected in the companys commitment to global corporate citizenship. The corporate strategies adopted by GE highlight the companys approach to business which entails a strong commitment towards all its stakeholders including the management team, the employees as well as the consumers and society at large. The company has a well defined framework which has profit and ethical business at the center of its corporate strategy. It approach to business is defined as commitment to "make money, make it ethically and make a difference". CSR as a concept has been present historically although in recent times its meaning and extent and scope have widened and changed considerably. In present times, CSR entails aligning social responsibility with the company’s strategic goals. GE is committed to serve the community through its wide range of philanthropic activities, along side its commercial goals. It supports various social causes ranging from education to health and environment and believes in investing in the development of the wider society, beyond its employees and customers. The company encourages participation in community work by its employees and delivers increased outcomes for those in need. In 2010, the company helped by contributing approximately $250 million, towards educational programs alone through the GE foundation. This is in line with its principle that corporations have a responsibility towards the society at large and that business and community must go hand-in-hand. Figure 2: Source: GE It has been widely noted that undertaking of activities solely with the intention of earning profits without any regard to the consequences of such activities on the general public, has cost companies their reputation and goodwill. The case of General Electric dumping a highly hazardous and toxic chemical in the Hudson River bears testimony to the fact that the corporate houses have a high responsibility of displaying ethics and ethical behavior while conducting business, since their activities might prove to be highly fatal for the wider community. Ever since that debacle, the company has shown a high commitment towards the environment and has incorporated sustainable practices with a strong commitment towards protecting and preserving the natural resources. This is apparent from its recent undertaking, popularly referred to as Ecomagination – a bold new initiative committed to providing eco friendly solutions to some of the worlds most pressing issues through aggressive commercialization of technologies which rely on natural resources and generating energy from wind, solar energy, development of water purification technologies to reduce water usage; develop high-efficiency turbines operated by gas; and low fuel emission vehicles such as hybrid locomotives. As a result of its persistent efforts at ensuring and incorporating sustainable practices alongside its corporate agenda, GE has been ranked among 11 Aaa-rated companies by an international corporate sustainability consultancy and assurer - Two Tommrows. It has also shown high commitment towards the society by consistently promoting and developing eco-friendly products, undertaking initiatives towards climate change and reducing carbon footprint; promoting the use of technology for energy saving and reducing emissions; and display excellent leadership and commitment in the process. GE - the worlds largest manufacturer of power-generation products is now being widely recognized for its sustainable business practices. Its corporate strategy to align its social responsibility and at the same time pursue its business goal of profit maximization has been largely successful as is evident from its profits. The company has managed to garner high profits on its eco-friendly products, which according to reports have doubled in sales over the past couple of years. In 2010, the company garnered decent earnings of $12.6 billion despite the global economic meltdown. As the world awareness towards eco-sustainability grow, the corporate giants worldwide are increasingly investing in people and the society, in a bid to uphold their corporate reputation and brand image, and earn customer confidence. GE’s investment in green products and the wide range of activities it supports are a reflection of changing times and the increasing significance of CSR in the 21st century. Source: http://www.gecitizenship.com/ Total word count: 792 3. Pedigree Pedigree is the worlds number one pet care brand which offers a wide range of innovative pet care products. The company specializing in dog food was founded with an aim to serve the community by catering their need to adopt homeless dogs. Pedigree supports and funds the care of homeless pets and sponsors a nationwide adoption drive, whereby it strives to provide shelter and breeding ground for homeless and rescued animals. It is a widely known fact that a companys brand image and recognition relies heavily on the manner in which its customers perceive it. Hence, various companies today focus on CSR as a means to distinguish itself from their corporate rivals and create a niche in the market through product and service differentiation. CSR is one of the key criteria on which the companies today are judged and valued by its customers. The image of the company is formed on the basis of its activities and contribution to the society, which in turn is transferred to its products thus resulting in the ultimate buying decision. The consumers choice of a product hence relies on the manner in which a company communicates, undertakes and executes its social responsibility initiatives. Pedigree has successfully incorporated its corporate goals with its social activities which have helped in creating a highly influential brand image. The various activities undertaken by the company such as promoting adoption of homeless animals; providing shelter; and rescuing animals has helped in creating a strong and positive image in the minds of the consumers thus affecting the reputation of the company in a positive manner. The company supports a dedicated website known as the Pedigree Foundation, which is a philanthropic organization and is involved in supporting the companys CSR activities such as finding shelter for homeless dogs, providing funding for animal care and rescue; and donating to various institutions to improve veterinary care. Pedigree Pet Foods is sincerely dedicated in its efforts with regard to animal welfare. This is evident from its persistent efforts and initiatives to support and care for homeless animals. The company has created a strong brand name and presence in the industry through its widespread campaigns in support of animals, thus attracting the pet lovers and animal rights activists alike, and gaining huge customer base in the process. It has established strategic relationships with known animal groups, thus indicating its unrelenting support and care for the environment. It has successfully managed to establish a competitive edge over its competitors by collaborating with renowned animal care institutions, such as the American Humane Society. Such association along with its philanthropic campaigns has helped the company in gaining wide scale public support, and establishes itself as a pioneer in pet foods industry. Its commitment to corporate social responsibility is substantial and continues to grow over the years. Pedigree promises to donate a part of their earnings to animal shelters and for animal welfare, a fact which is advertised on their products, websites and social networking pages. Such an initiative influences customers’ decision with regard to buying products from the company due to the goodwill and social cause attached to it. Thus, the company has successfully assimilated business with corporate ethics. According to GoodGuide – an organization involved in providing health, social and environmental performance of products and companies Pedigree has been rated 23.4% higher than its competitors within the pet care industry (http://www.goodguide.com/about). The average product rating for Pedigree was 6.2, and the company was ranked on three key parameters including health, environment and contribution to society. The statistics with regard to the same are mentioned in the figures below: Figure 3: Source: GoodGuide The above ratings confirm the impact of Pedigree’s commitment to social causes. Furthermore the success of its initiatives can be established from the fact that the Pedigree Adoption Drive, a social animal rescue campaign which was launched in the U.S., during the year 2005 has caught on and received widespread public support, with the result that the company, as of 2011, has been able to successfully place over a million dogs in shelters and through adoption. The company is also responsible for launching highly innovative campaigns such as the PAW campaign (Pet Adoption on Wheels) a PAW Mobile - a vehicle sponsored through the 2010 Innovation Grants funds, in association with the Corporate canines program, was launched to accelerate the process of animal adoption and rescue. Such programs and campaigns launched across the country leads to high product visibility, thus helping the company in gaining customer confidence in their products and services. Association with such brands is hence considered a matter of pride and status symbol for the consumers, who are influenced by the company’s policies towards the society as well as the environment in general. CSR helps companies gain a positive image thus increasing brand awareness, which in turn ultimately can be translated into revenues. Total word count: 810 Source: http://www.pedigreefoundation.org/ 4. A Whole Lot of Good: Whole Foods “Whole Foods, Whole People, Whole Planet” Whole Foods is a food super market chain based in Austin, Texas with stores in Canada as well as in the UK. The company is involved in sale of natural and organic products. Its core values which are deeply incorporated in its motto, include ensuring provision of high quality natural and organic food products to its consumers; ensuring optimum customer satisfaction through its products and service delivery; ensuring wellbeing of its employees and workforce; creating wealth through profits and sustained growth; caring about the society and the environment and promoting healthy eating through education and spreading awareness. Whole Foods Market was named by Health Magazine as America’s healthiest grocery store, and received widespread acknowledgement for the promotion of healthy eating and living, among its consumers. The companys corporate social responsibility strategy is centered on eliminating poverty through supply of Whole Foods products to poverty ridden nations across the globe. These activities are carried out through the companys dedicated organization i.e. the Whole Planet Foundation which is a not-for-profit organization established by Whole Foods, and is involved in providing grants and funds to countries in Latin America, Africa as well as Asia. The foundation offers microfinance, and other financial services through its centers based in the above mentioned countries, and encourage self-employment among the poor as a part of its poverty alleviation program. Whole Foods Market, shows high commitment towards its social responsibility which is reflected in its company policies. It strives to offer a healthy working environment to its diverse workforce and ensures utmost employee satisfaction along with customer satisfaction. Thus it shows commitment and care for all its stakeholders both – within and without the organizational sphere. It is on account of such dedication and commitment towards its internal policies, that the company has been ranked one of the "100 best Companies to work for" for 14 consecutive years, by the renowned FORTUNE magazine. Whole Foods Market, is involved in promoting and providing microfinance to various poor countries across Latin America, Africa and Asia. As a part of this campaign, the company offers to forward a part of its sales proceeds on select products, towards the noble mission. Such an initiative serves two purposes – that of generating awareness and contributing for social causes thus making a difference in the lives of the millions of poor people worldwide, and at the same time encouraging sale of its products thus satisfying its profit maximization objective, in the process. Whole Foods Market, is touted to be one of the first ever companies to offer natural and organic foods thus supporting and promoting healthy living among its consumers. Such an initiative not only possess the power to make a positive difference in the society, but also paves way for other food companies to follow suit. In order to avoid competition, it is inevitable for the rival companies to introduce healthy food to its customers, thus implying that innovative and healthy means of conducting business, has the potential to positively affect the wider community. Corporate goals and social responsibility can and does go hand-in-hand and can co-exist, as is evident from the corporate structure of Whole Foods Market. The customer awareness regarding healthy living and eating habits has grown substantially over the years and is evident from the high sales figures generated by the company. According to statistics, Whole Foods Market recorded total sales of over $10 billion, for the fiscal year 2010, thus indicating the scope and market for natural and organic food. Furthermore apart from the Whole Planet Foundation, the Whole Foods Market is also actively involved in environmental sustainability projects. The company was the first major retailer to offset 100% of its energy use with wind credits, thus taking a huge step forward in protecting the environment. Such a trend is likely to spark off a series of similar efforts by other players in the industry, to retain the competitive edge. It also works closely with its suppliers to ensure optimum treatment of animals in a bid to improve the quality of animal products offered in its stores. Thus, CSR not only helps the company itself but also helps elevating the performance bar across the industry, by setting an industry standard. Whole Foods Market has single handedly changed the rules of the game, by influencing the entire super market industry. Thus on the basis of sheer innovation and creative business practices applied by Whole Foods Market, the company has elevated and reaffirmed the significance and influence of CSR on organizational growth. Total word count: 755 Source: http://www.wholefoodsmarket.com/values/green-mission.php http://www.wholeplanetfoundation.org/cp/make-change-not-waste 5. Starbucks "Weve always believed that businesses can and should have a positive impact on the communities they serve" Starbucks has shown consistent commitment towards social and environmental causes ever since the company was first established in the year 1971. Over the years the company has evolved significantly and adapted to the dynamic external environment through renewed corporate social responsibility strategies, which addresses the issues and concerns relevant to the 21st century community. Figure: Starbucks’ corporate social responsibility initiatives Source: Starbucks Starbucks has been involved in sustained efforts aimed at community support such as building greener stores and raising eco-awareness among its consumers; protecting natural resources through its water conservation projects; and laying a foundation for sustainable business practice. With regard to its contribution towards the community, Starbucks has been actively involved and dedicated in its efforts to create employment for the underserved communities in the country. The company is also involved in promoting employee volunteerism by encouraging their workforce to participate in volunteer programs aimed at serving the community. The programs also include and involve youth participation who are then directed towards meaningful social and environmental campaigns such as growing trees, and indulge in various creative projects which have a substantial community benefit. The Starbucks RED program was launched as a part of the companys initiative to fight AIDS in Africa and in the process make a difference to millions of lives. The Ethos Water Fund project was launched as a part of the companys environmental protection strategy which is involved in providing water, sanitation and hygiene education programs. This program is directed towards provision of clean drinking water to the poor communities and is supported by Starbucks in association with Ethos Water Fund. The project entails that every purchase of a bottle of Ethos, would result in a contribution of 5 cents towards the Water Fund project, thus contributing to a worthy social cause. The Starbucks Foundation is a community which is established to offer community wide assistance in various fields. It offers programs directed at the youth, and is involved in offering grants to youths to help them make a difference to their communities. The Starbucks foundation also supports all its suppliers of raw materials with improved access to education, agricultural training as well as microfinance. It also offers guidance and training with regard to water sanitation and conservation; the optimum methods of growing agricultural produce required for making coffee and other similar beverages; and helps in improving and preserving bio-diversity. Furthermore the Starbucks Foundations’ China Education Project is a $5 million project initiated in the year 2005 is involved in supporting educational programs in the country. Also, the foundation supports the rebuilding of the Gulf Coast through its COAST Fund which was created to assist in the recovery of gulf coast communities which were suffered large scale devastation due to hurricanes Rita and Katrina. Apart from the philanthropic activities, Starbucks has effortlessly merged two of its most significant goals of profit maximization and community service through its creative corporate strategies. The company is dedicated in its efforts to conserve the environment and promotes the same through its products and services. Starbucks relies on sustainable coffee-growing communities in a bid to renew its environmental impact. The company uses green buildings and water conservation strategies as an integral part of its corporate policy. As a part of this initiative, starting from the year 2010 onwards, all the new company stores will be built in accordance with environmental guidelines and in a way which causes the least possible damage to the environment. It has also adopted recycling as a means to reduce its carbon footprint, and uses and encourages the use of recyclable cups. Furthermore the company is also highly conscious with regard to business ethics and takes utmost care to ensure that all the products used are ethically permissible. Hence, it encourages the use of ethically grown and traded coffee. This entails ensuring that the coffee grown and marketed by its suppliers is done through ethical means whereby all the workers involved in growing coffee have an opportunity to work in humane conditions, thus promoting and ensuring human rights. The use of such measures by corporate giants such as Starbucks sets high performance standards in the industry and influences the rivals to follow suit, thus ensuring greater social well-being. The rising trend of incorporating business with social responsibility is influenced by industry leaders and encouraging such a practice would help in setting better industry wide standards of corporate performance, whereby the interests of the community at large are protected and endorsed. Total word count: 761 Source: http://www.starbucks.com/responsibility 6. Burt’s Bees Burts Bees is a personal care product manufacturing company which specializes in the production and promotion of natural environmentally friendly products. The company is committed to protection of environment and providing natural care products to the customers and in a bid to ensure compliance with its goals helped in establishing the “The Natural Standard for Personal Care Products” - a set of guidelines which includes a list of things that can be considered as "natural". The company strictly adheres to the principles laid down in the Natural Standard, and promises good quality and 100% natural products to its customers. The company also boasts of completely natural products a feat which is rare in the industry. Such high level of commitment towards the consumers well-being reflects the its dedication towards social causes. The products endorsed and sold by the company hardly has any negative health risks associated with them, unlike the various other substitute products available in the market. The same level of commitment is seen in the packaging of its products. The company strictly follows international environmental standards ensuring its commitment to environmental sustainability. Figure: Burt’s Bees Corporate Social Responsibility Source: Burt’s Bees The company is dedicated in its efforts to ensure maximum protection of its customers by way of offering natural products which has minimal or no health risks attached. The same is guaranteed through its association with various reputed institutions such as Habitat for Humanity, and AmeriCares - both international not-for-profit non-governmental organizations committed to serving communities at large. Burt’s Bees, as a part of its Corporate Social Responsibility believes in ensuring optimum benefits to the stakeholders, and hence encourages high level of transparency with regard to its policies and products. The company observes a high transparency policy whereby all the ingredients used in the products are listed and disclosed the public, in order to ensure that their customers are empowered to make informed choices regarding the products they purchase. Furthermore, Burt’s Bees is actively involved in giving back to the community which is done through the Greater Good Foundation, supported and operated by Burt’s Bees. Under this program 10% of all proceeds of the company are directed towards humanitarian efforts and used for the betterment of the community at large. The company is also involved in providing an extremely rich and diverse workplace whereby all its employees are afforded health benefits, and the highest standards of safety. Due to its high level of commitment to the society and best practices the company was named as the number one Green Brand at a worldwide poll conducted by ImagePower Green Brands Survey. As many as eight countries participated in the poll, naming Burts Bees as the most trusted and green brand by the customers, followed closely by Whole Foods. As a part of its environmental commitment Burts Bees sought to reduce its non-recyclable, non-reusable waste, which was reduced by 21% during the financial year 2010. This initiative is in line with its commitment to preserving the natural environment by reducing landfills. Burts Bees has committed to apply best environmental practice in order to achieve its target of becoming the Greenest Personal Care Company on Earth. Also, the company is involved in ensuring 100% employee commitment whereby under the Live the Greater Good Program, all the employees of Burts Bees will be actively involved in projects aimed at social and environmental good, thus motivating and spreading the endorsement of public good, and ensuring community development in the process. Apart from the products the company strives to achieve the goal of 100% natural products used in packaging as well. Burts Bees is highly environmentally conscious organization which believes in and endorses the use of natural products to ensure minimum harm to the environment as well as to avoid health risks to their consumers. It aspires to use modern innovative technology to design packaging products which are made from 100% PCR (Post Consumer Recycled) and biodegradable or compostable products. Most of the companies today are now increasingly adopting Corporate Social responsibility as an integral part of its business strategy. The world we live in today is highly interconnected wherein every element and aspect of our lives in connected to the other. Thus it is inevitable for companies to promote and incorporate social and community care as a part of their corporate strategies, in order to help the human society to develop and prosper, and help in maintaining a healthy balance in our physical environment. Total word count: 742 Source: http://global.burtsbees.com/c/about-us/ Read More