CORPORATE SOCIAL RESPONSIBILITY AND THE ACHIEVEMENT OF BUSINESS SUSTAINABILITY
Corporate Social Responsibility and the Achievement of Business Sustainability
Most multinational businesses have thrived for a long time due to the techniques applied by managers in the new competitive market. With high competition and changes in the economy, politics, social composition, technology, and other factors affecting businesses from within and outside the organization, business sustainability has remained a major challenge for most businesses today (Frias-Aceituno, Rodríguez-Ariza and Garcia-Sánchez 2012). Business sustainability entails the idea of achieving long-term goals without interfering with the current objectives (Bansal and DesJardine 2014). However, different corporations have various methods of ensuring business sustainability as well as the accomplishment of the aims of the stakeholders of a company. Bansal and DesJardine (2014) define business sustainability as the creation of a long-term value since the managers focuses on measures that would obtain current goals as well as the future and planned objectives. Similarly, the authors argue that sustainability does not compromise the ability of the business to achieve their objectives in the future (Bansal and DesJardine 2014). The current techniques and goals should not make the future generations fail to achieve their objectives; thus, ensuring business sustains the current business waves and the forecasted obstacles.
Business Strategy and Corporate Social Responsibility
According to McWilliams (2015) corporate Social Responsibility is a method that organizations employs in an effort of associating a community in development projects purposely for enhancing the interaction between the company and the neighboring community. Most projects enhance the objective of a company, which is precisely beyond profit maximization. A company that engages in Corporate Social Development has a unique way of winning the competitive market since most consumers would prefer a company that brings back to the community. McWilliams (2015) argues that the ancient objective of a company was to make profits as per the requirement of most stakeholders, but recent studies (Gupta, Briscoe and Hambrick, 2016; Saeidi, et al., 2015; Trong Tuan, 2012) reveal the interaction of managers and the community as the government intervenes in an effort of increasing positive impact from a company in the community development.
Business sustainability and the corporal social responsibility have a relation since different authors and scholars have suggested several incidences that intertwine the two modules. D’Amato, Henderson, and Florence (2009) suggest that corporal social development involvement in a community would help the business attain a forecasted sustainability since the firm would have important objectives towards the obvious consumers around the community. Similarly, the government intervenes to ensure the company has a positive impact towards the community as well as meeting the primary objective of wealth creation to the stakeholders and increasing revenues towards the state (Linnenluecke and Griffiths, 2013).
How to Promote Corporal Social Responsibility
Business involvement in CSR is a social responsibility brought up by the ideas of many individuals with the power to decide what to do in a community. For instance, Gupta, Briscoe and Hambrick, (2016) argue that the size and reputation of a company determine the involvement towards a community. A big company would have the attention of many individuals including the government and the community in helping the community attaining environmental goals. Similarly, Gupta, et al. (2016) explain the possible reasons that promote the intervention of a company in a CSR system. They argue that the decisions of the top officials of the company have the final rule to deciding on whether to get involved with the CSR or not.
According to Wu et al., (2014), the involvement of a company in the development of CSR is a way of achieving many goals associated with the sustainability of the business. However, the best way to promote the company’s CSR is to define the role of the company in the community and the possible ethical measures that would see the development of the community in a positive way. Wu et al., (2014) describe the importance of ethical definition in relation to whether the involvement in CSR would ensure positive feedback towards the business as well as maintaining the sustainability development forecasted by the managers. Therefore, the study described the importance of identifying ethical leaders that helps in understanding the improvement of a company that leads to sustainable development (Wu et al., 2014).
An analysis conducted by Pless, Maak and Stahl, (2012) indicates the measures responsible for promoting the evaluation of an excellent CSR in a company. The authors argue that companies should train competent leaders who would understand the importance of implementing CSR in the business entity. However, Pless, Maak and Stahl (2012) recommend the idea of sending qualified managers to other developed countries in encouraging the learning of newly implemented ideas obtained from social responsibility from other competent companies. Similarly, the authors suggest the goals of every company suggesting the implementation of a criterion applied by Ulysses Company that aimed at promoting the implementation of CSR in their community as a way of protecting their goals of business sustainability. The study entails ideas suggesting that Ulysses Company aimed at sending their managerial trainees to other developed parts of the world to attain new tactics that would help the company achieve their goals and meet sustainable development. Similarly, the idea of obtaining lessons from foreign countries has helped the company in analyzing the effectiveness of CSR in bringing sustainable development in their country, thus, having positive impacts to the business entities.
Another study by Jones Christensen, Mackey and Whetten (2013) contemplates on the importance of leadership qualities in the implementation and promoting of CSR strategies at a given company. They suggest that a company has leaders and followers with a similar goal of sustaining their sustainability in the long-run. Thus, implementing a progressively achievable CSR would be the first step in winning the trust of the community. Additionally, Chabrak (2015) brings out the notion of promoting CSR with the implication of improving the integrity of the business. The idea of protecting the integrity works best when the company officials promote the workability of a company in an effort of retaining their goals of protecting the interests and nature of the business in the community (Chabrak, 2015). Therefore, the idea would promote CSR and at the end enjoy the fruits of business sustainability. .
Saeidi et al., (2015) explained the correlation between the implementation of CSR and the performance of a company. They emphasize on methods that lead to the promotion of CRS in a company that would see the development of the company. Customer satisfaction was the main objective in winning the competitiveness as discussed by the authors that has contributed to the financial performance with a better implementation of CSR. Therefore, Saeidi et al., (2015) suggest that a company aiming at promoting the implementation of CSR should focus on protecting the firm’s competitiveness ideology, protecting company’s reputation, and enhancing customers’ satisfaction. Additionally, Hopkins (2007) debated on the importance of implementing CSR as a way of enhancing the promotion of the goals of the company in enhancing business sustainability. Therefore, the topic analysis on the importance of promoting CSR and the performance of a company has an understanding that aims at protecting the company in a long-run.
Reasons for a Company for Improving CSR
The success of a company in the field of profit maximization and sustainability depends on the strategies employed to see the development of the company. However, managers and stakeholders opt to incorporate the implementation of CSR with the aim of improving their financial performance. Flammer (2015) argues that -moststudies in the early 20th century have discussed the incorporation of CSR and financial performance as a failure. The Flammer (2012) opposes the idea since recent articles articulate an improvement in company’s financial performance in association with CSR. Therefore, as discussed by Flammer (2015), a company should implement CSR with the aim of improving their financial performance. Similarly, Jiraporn et al. (2014) add a credibility Flammer’s study by suggestingthat incorporating CSR in a firm’s business strategy helps increaseits credibility. However, better CSR strategies must be employed to see an improvement in CSR policies. Jiraporn et al. (2014) suppose the importance of improving the employment of CSR in the system of a company to increase credit ratings as well as offering a concrete platform for investors. According to Jiraporn et al. (2014), the use of CSR is a way of secret advertising that helps consumers learns about the company and their products.
The purpose of a CSR strategy in a company is to ensure all the stakeholders are taken care of regardless of the primary purpose of financial prosperity. However, Servaes and Tamayo (2013) argue that every company has an aim of pleasing the stakeholders as well as maintaining a well-established financial development. A company with a well-organized CSR system would create awareness in response to the competitive environment, thus, allowing valuable stakeholders such as customers to have a clear awareness of the policies employed by the company through the employment of CSR. Additionally, CSR helps in branding a company as valuable towards the perspective of the community. Cheng, Ioannou, and Serafeim (2013) add that the implementation of a CSR strategy would increase chances of accessing financial support from lenders, investors, and other financial institutions. However, Garay and Font, (2012) discussed the importance of CSR in small enterprises that purposely covers small-scale businesses. Garay and Font(2012) suggest that the incorporation of CSR in small businesses would result in the development of the businesses that would ensure growth and profit maximization in the long-run. Therefore, the studies reveal the reasons behind the need for improving the incorporation of CSR in every business that would see the growth of a company.
Additionally, a company that aims at winning a competitive environment would utilize any available resource for the business to thrive. Therefore, the company would use the available strategy of implementing CSR as a way of creating awareness as well as competing with the similar businesses. Boulouta and Pitelis (2013) provide a platform that discusses the importance of CSR in a competitive environment. The primary focus of a business is to meet the demands of shareholders, but that could not help in the fight against competition. Therefore, Boulouta and Pitelis (2013) bring the argument of a business trying to comprehend meeting the expectations of the possible stakeholders mainly consumers. According to Boulouta and Pitelis (2013), a company that accomplishes the desires of stakeholders has a better place in competition compared to other businesses that focus of profit maximization. Similarly, Lund-Thomsen and Lindgreen (2013) append the importance of CSR in expanding the global value chains that help in the development of a business network. For instance, a company has the mandate to implement CSR in creating awareness to the public on what activities entails their types of products or services. Furthermore, a company has to take responsibilities of other people they do business with and, provide adequate care to the workers and the society. Therefore, as Hahn (2012) claims, CSR helps in accomplishing the urge for a company to draw a clear picture of their business thus, the need for improving the implementation of CSR.
0Factors that Contribute to Business Sustainability
Business is said to be successful when the managers can sustain from the challenges facing the development. However, some factors affect the growth of business both positively and negatively against their goal of financial health. Gimenez and Tachizawa, (2012) conducted a literature review of the possible outcomes that ascertains the implementation of unique strategies to see the development of business. Gimenez and Tachizawa, (2012) argue that business sustainability derives motives from supply chain whereby, the managers aims at creating a solid relationship with suppliers and other business associates. The idea would ensure winning of the clients’ trust in the business, thus, minimizing the chances of competition, which might kill the dream of sustainability.
Additionally, a business has the mandate to take responsibility of a community in return take the sustainable development of the society in the form of profit maximization (Baumgartner, 2013). However, Baumgartner(2013) argues that any business could attain business sustainability, but not all enterprises could achieve corporal sustainability, which endeavors between a link of CSR and being sustainable. Sustainability is driven by the presence of CSR platform that levels-up the availability of unique strategies that helps the achievement of company’s goals and sustainability (Cohen et al., 2012). Similarly, the tool for measuring an achievement of sustainability differs from people’s perspective. For instance, several enterprises have been using GDP as a tool for measuring the development of sustainability, thus, proving that the tool used in identifying the progress of business sustainability would react to any possible outcome (Pintér et al., 2012).
Moreover, technology development has recorded a significant contribution to the fact that sustainability and performance have taken the new waves in the business world. Carayannis, Sindakis and Walter (2014) argue that business sustainability is an outcome of business venture where managers and shareholders invest in technology as a way of sustaining from the current challenges. Similarly, Loorbach and Wijsman (2013) brings the idea of helping a business achieving sustainability from the lowest level but employing concepts that would see the expansion of a small business into a big corporate. Therefore, Loorbach and Wijsman (2013) used several examples that would help a small enterprise achieve the desired level of sustainability to the extent of growing into a bigger company, thus, ensuring a factorized concept in sustainability. For instance, the authors suggest the use of organizational transitional approach rather than optimizing the existence of a company. Similarly, transitional approaches entail the use of an illustrated approach called “Roof Transition” that describes the importance of experimental and research approach that would help managers attain their desired sustainable development (Loorbach and Wijsman 2013).
The sustainable business focuses on social impacts towards the realization of their goals irrespective of the duration of their success. Slawinski and Bansal, (2015) argue that a business would focus on either long-term or short-term goals that would help to achieve their sustainable level. Slawinski and Bansal’s (2015) study helps in illustrating what oil companies take in handling the emission of Greenhouse gas that affects the community. The effect might lead to losing of consumers in response to affecting the environment; thus, a company should ensure protecting their image by respecting the nature as well as focusing in profit maximization.
Another study by Hahn et al. (2014) articulates the possible factors influencing corporal sustainability. The authors argue that a business manager would focus on social, environmental, and economic goals that would see the development of financial prosperity. However, the move should take in the idea of incorporating CSR into the business strategy hence, increasing the consumers’ trust, and financial obligation (Hahn et al., 2014). Besides, Law (2010) takes the reader through a process of understanding what entails a company in the process of delivering sustainability in the industry. Law (2010) illustrates using a high-tech company where sustainability is the major purpose considering the competitive world.
Similarly, Zink (2014) stresses the idea of human factors that contributes to company’s sustainability in an effort of focusing on their objectives. Zink (2014) names human factors as ergonomics that defines social sustainability. Therefore, the factor that conceptualizes sustainability must be followed by a show of willingness and resource allocation that would help the company attain the achievements of having a sustainable development, thus, answering what should be done to achieve a company’s objectives.
CSR Contributing to Sustainability
Sustainability has developed due to the availability of CSR platform where companies have analyzed the importance of incorporating the wills of the community and the government (Moon, 2007). The link between CSR and profit prosperity is becoming thinner day by day when managers and shareholders consider giving back to the community as a way of winning competition and advertisement. Lozano, Carpenter and Huisingh, (2015) argue that sustainable development has been fueled by the availability of CSR strategies and other development theories when the company focuses on long-term goals instead of short-term profit maximization. Similarly, Reverte (2011) stresses the idea of employing CSR in the development of a sustainable company. The author illustrates with U.S companies that have reported prosperity after enrolling to government environmental services; that is, helping the government in climate restoration. Another study by Aguinis and Glavas (2012) concentrated on the link between CSR and sustainability consists of literature reviews from different authors who tried to analyze CSR and other concepts. Aguinis and Glavas (2012) discussed the relationship between CSR and sustainability since most authors contemplated that the implementation of CSR system in a company leads to various results that include profit maximization, competitive advantage, the value of stakeholders, and marketing strength, among other benefits. Therefore, the review of (Aguinis and Glavas, 2012) discusses all the possible positive results brought by the use of CSR.
Recent studies have discussed the contribution of large entities into the degradation of climate (Wang and Sarkis, 2013). However, the need to clear the doubt, most companies involve in contributing towards the concepts of helping the world achieve a clean world. Therefore, Lozano (2013) discusses the correlation between CSR and the sustainable development where companies focus on helping the government and other NGOs in cleaning the world. In the process, managers find themselves in a cocoon where they have to help the environmental changes and lead to the accomplishment of a corporal sustainability (Hąbek and Wolniak, 2015). The similar analysis includes the study of Lozano (2012) that entails an analysis of company’s system that develops from implementing CSR system. For instance, the tourism sector has declared that they have the mandate to protect the environment since their business works best in places with cool and reliable climate, thus, the need to protect nature should be their priority that would see the industry make millions of profits (Coles, Fenclova and Dinan, 2013).
Flammer(2012) discusseda number of companies that implement CSR and those that fail.. The results showed that business entities reported different results since many companies that contributed to environmental awareness increased their sales compared to others that neglected the CSR implementation, thus, making a decreased curve of profit maximization. Additionally, Rexhepi, Kurtishi and Bexheti, (2013) articulates the importance of CSR in realizing innovation as one of the best drivers of sustainability. Linnenluecke and Griffiths (2013) adds credibility to the discussion of sustainability as linked to CSR. The authors suggest that CSR is the primary contributor to sustainable development success when incorporated towards the social and environmental issues. Furthermore, Schaltegger, Freund and Hansen (2012) shos the importance of CSR in the development of company success, thus, proving the point of CSR as the instigator of development sustainability. Heikkurinen and Bonnedahl(2013) also argue that environment degradation is political; thus, every large business entity should take part in restoring the climate, and that would help the business attain a successful sustainable development.Strand, Freeman and Hockerts (2014) also noted that CSR leads to the achievement of sustainability and they give an example of Scandinavia:a country that is well known for their sustainable development and a good implementation of CSR.
The literature review has widely exposed the relationship between the implementation of Corporate Social Responsibility and sustainable development study. Different authors have analyzed the topic discussing the importance of incorporating CSR for the benefit of improving the environmental and social development as well as attaining a reasonable sustainability. Sustainable development is attained by mixing specific strategies connected to CSR that helps the consumers believe in the company, thus, creating a platform for business competitive superiority. Various companies like Nike Incorporation have created a platform in the business world whereby they have established a platform that implements CSR, helping them achieve financial goals, as well as sustainability. Therefore, the literature review summarizes ideologies of different authors on the topic of correlating CSR that leads to business sustainability.
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