Corporate Social Responsibility Program - British Gas - Essay Example

British Gas Proposal for Corporate Social Responsibility Program The contemporary world of commerce requires that businesses to go beyond the motive of profit making in business. To this end, it is a paramount for any organization to incorporate a corporate social responsibility component that aims to ensure that its operations exude economic, social, and environmental benefits in a sustainable manner. Evidently, in the United Kingdom, the extreme weather periods during winter means that temperatures reach freezing levels that are highly unfavorable to the health of local inhabitants. To this end, the local populace has to adopt artificial warming strategies in order to cope with the harsh weather conditions. The heating services are normally offered by local heater service providers at a fee. In this regard, one such company is the British Gas Company located in the Middlesex County in London, United Kingdom. Evidently, the cost of maintaining such heater services normally rise drastically since the hours of heat warming are determined the length of the extremities of the winter period. In this regard, it is critical to point out the disparities in the levels of income that hamper the abilities of the lower income families to maintain their gas payment for the heater services. This most often results to a termination of the heater services and leaves the poor families susceptible to a host of health complications and life threatening situations. To this end, the necessity of a corporate social and responsibility plan is pertinent towards addressing the needs of the low income earners in Middlesex County without affordability to the high gas bills. Evidently, the Corporate Social Responsibility will aspire to achieve three pertinent issues, increase access of to gas provided by British gas; provide assistance in financial resource mobilization for the low income earners so as to increase their purchasing power; to lobby for incentive measures from the gas provider that will ensure access to low cost gas. Financial Issues in the Community The aftershocks of the global financial crisis greatly affected the economies of the European countries and the purchasing power of local households Moon. In this regard, the household incomes of various households across London were negatively affected to the effect that the purchasing power of basic necessities was significantly decreased. The situation has been aggravated further by the rising costs of basic amenities such as food, clothing, and shelter. In addition, other essential commodities such as house heater services during winter climates have become increasingly unaffordable. This has been due to the increase in service charges for gas supply by provider companies such as British gas. To this end, the cheapest gas charges are at least three hundred pounds monthly (Social action plan and household energy efficiency: Ofgem : report 2004). This rate is above the purchasing power of very many low income households. Evidently, One in ten households in London households is unable to afford the high gas charges. To this end, the low income earners are subjected to health related risks arising from the harsh cold winter. These include pneumonia, frost bites, common cold among other. Furthermore, the poor families are subjected to increased death rates arising from the extreme winter period. Evidently, a raft of measures needs to be introduced so as to increase the purchasing power of the low income earners, provide alternatives that guarantee low cost gas supply, and solicit for contributions that will go towards alleviating the cost of gas supply to the low income earners. Description of the Corporate Social Responsibility Program The precincts of a social responsibility program entails four major components. Foremost, a CSR program requires businesses to carry out their financial duties in a social responsible and ethical manner. Second, it entails ensuring that the safety of people and the environment is protected. Third, it involves ensuring support of human rights. Finally, a CSR program envisages the engagement, gaining knowledge from, supporting and the respecting the cultures and communities within which businesses operate. In general, the corporate social responsibility program should actively seek ways of community investment while engaging in profit making. To this end, it is paramount that the British gas company incorporates the needs of the low income clients as pertaining to their purchasing power of the gas services. This obligation is in light of the high cost of living to which poor families within London have been subjected and thus experiencing difficulties in financing their basic amenities. Evidently, the major issue facing the low income earners in London pertains to their inability to afford the monthly gas bills from the British gas company. Consequently, they are unable to access heater services during winter periods which eventually lead to health related complications as well as high death rates among the low income earners. To this end, the British gas company could engage in a corporate social responsibility program which seeks to address the affordability problem of the low income earners. Evidently, the British gas company corporate social responsibility policy entails the listening of opinions raised by customers, suppliers, employees and stakeholders. Moreover, the British gas company believes in responsive actions towards customer needs and adapting to emerging changes within the government and society. In this regard, the British gas company has the responsibility of incorporating a social responsibility program which addresses the needs of its clients. To this end, the British gas company would begin by canvassing for the low income earners within the vicinity of London city who cannot afford the high gas prices. Second, the British gas company needs to device a donation procedure whereby persons are able to offer donations which can be used in servicing part of the gas charge bills for the low income earners. To this end, the contributions will target a diverse range of people to assist in servicing the gas bills for the poor people. In order to achieve this, the British gas company will launch a publicity campaign dubbed “Heat for Health.” To this end, the publicity campaign will rely on the manpower from volunteers, humanitarian groups and employees attached to the corporate and social responsibility section. Their main purpose will be to use all media campaign tools urging people to donate at least one pound that will go towards cost cutting gas bills for the poor clients. The media campaign tools to be used will incorporate emails, television adverts, and public posters. In addition, the CSR program will collect the donations through designated collection points such as shopping malls, supermarkets, banking halls and a select few higher learning institutions. The ultimate event of the ‘Heat for health” corporate social responsibility program is expected to culminate in a marathon charity event across the London city. To this end, participation of marathon charity event will be through a registration fee of five pounds. In addition, the event is expected to attract sponsorship and pledges from a variety of multi corporations situated in London and the United Kingdom in general. To this end, all the proceeds resulting from the marathon event will go towards low income earners fund. Evidently, the general fund pool will not only be used to offset the high gas bills but also towards treatment of the persons in low income families that are suffering from chronic health problems due to the harsh winter effects. The corporate social responsibility plan will also entail provisions for discountable gas rates for people in low income families. This will evidently contribute towards offering low cost gas supply to the income families so that they can continue enjoying the heater services during the winter period. Moreover, provision of the low cost gas supply will be subject to an identifier code which classifies the low income earners who are unable to afford the high cost of gas charges. The corporate social responsibility is only expected to incur minimal costs on logistic issues such as production of campaign material. Reasons for Corporate Social Responsibility Program There has been a general misconception among some business owners that corporate social responsibility is mostly an engagement in philanthropic acts which will not lead to any gains for the business. In other words, they view it as a liability to the interest of the business. However, this school of thought is rapidly being discarded as businesses without a corporate social responsibility program are becoming increasingly alienated. Evidently, a business that exhibits social responsibility is able to generate goodwill and result to a positive image of the company’s products (Corporate Social Irresponsibility: A Challenging Concept 2012). In regard to the British gas company, there service products are evidently being labeled as too expensive for the low income earners. This scenario is credited with the increased health related complications during weather as well as high death rate. However, through embracing a CSR program that aspires to increase the affordability of gas charges by low income earners, the British gas company stands the benefit of strengthening its service products. This will be evident through the reduced cost of monthly gas charges as well as increased consumer access to the gas supply. Consequently, the company’s public profile and reputation stands the opportunity to significantly increase within its social market base. Furthermore, a socially responsible company is highly attractive to customers. Evidently, a business that is regarded as socially responsible is placed several steps ahead of its competitors. In relation to the British gas company, the corporate social responsibility program envisages a plan that will increase the affordability of gas to low income earners. In this regard, the customer supply base is bound to increase due to improved affordability of gas supply charges. References Corporate Social Irresponsibility: A Challenging Concept. (2012). Bingley: Emerald Pub.. Moon, C. (2001). Business ethics. London: Economist. New Gas Supplies and Meters - Gas and Electricity - British Gas . (n.d.). Cheap Gas & Electricity, Boilers and Energy Efficiency - British Gas. Retrieved May 3, 2013, from http://www.britishgas.co.uk/products-and-services/gas-and-electricity/new-gas-supplies.html Social action plan and household energy efficiency: Ofgem : report. (2004). London: Stationery Office. 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