Corporate Social Responsibility Goals & Means

Corporate Social Responsibility
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C O N T E N T S:

KEY TOPICS

  • A corporate social responsibility individual or team plans the goals and objectives of the organization.(More…)
  • Strategic CSR (or mere corporate social performance ) involves actions that appear to be motivated by higher social purposes and are, in fact, motivated by profits, noted Orts.(More…)

POSSIBLY USEFUL

  • For many firms, general operating goals and objectives have not been well integrated with strategy, vision, and mission, so it may not be surprising that social and environmental goals, in particular, have not gained much traction.(More…)
  • Our Plan has three big goals to achieve, underpinned by nine commitments and targets spanning our social, environmental and economic performance across the value chain.(More…)
  • The social objectives of a business pertain to goals for the business as it functions with other parts of society including individuals, other businesses, and institutions in the community.(More…)

RANKED SELECTED SOURCES

KEY TOPICS

A corporate social responsibility individual or team plans the goals and objectives of the organization. [1] The Harvard Business Review article Strategy & Society: The Link between Competitive Advantage and Corporate Social Responsibility provided examples of companies that have developed deep linkages between their business strategies and CSR. 36 CSV acknowledges trade-offs between short-term profitability and social or environmental goals, but emphasizes the opportunities for competitive advantage from building a social value proposition into corporate strategy. [1] The primary purpose of a business is to maximize profits for its owners or stakeholders while maintaining corporate social responsibility. [2] Other times, managers use these initiatives solely to pursue intangible benefits such as brand affection or as a means to communicate the company’s corporate social responsibility, without consideration of how they might create business value for the firm. [3] The heightened role of government in CSR has facilitated the development of numerous CSR programs and policies. 120 Various European governments have pushed companies to develop sustainable corporate practices. 121 CSR critics such as Robert Reich argued that governments should set the agenda for social responsibility with laws and regulation that describe how to conduct business responsibly. [1]

Encouraging employee participation in community events and providing assistance with local volunteer groups represent a few of the objectives for a small business interested in social responsibility as a primary purpose of the business. [4]

He adds: “I think in any corporation that sets out measurable goals for operating at a high level of corporate social responsibility, internal auditors can play an important role in assessing the risks and controls associated with these goals and the strategies and tactics put in place to attain them, as well as the integrity of the resulting performance reporting.” [5] What is Strategic Corporate Social Responsibility? By taking a strategic approach, companies can determine what activities they have the resources to devote to being socially responsible and can choose that which will strengthen their competitive advantage. [6] Another positive impact corporate social responsibility has on nonprofit organizations is the possibility of corporate partnerships. [7]

Strategic CSR (or mere corporate social performance ) involves actions that appear to be motivated by higher social purposes and are, in fact, motivated by profits, noted Orts. [8] It is very important to remember, cautioned Webb, that if businesses do not make money, they are not going to be able to engage in social responsibility; therefore, wealth creation does remain the main objective for business. [8] There is broad agreement that for the future, chief audit executives need to ensure that social responsibility is on the board’s agenda of corporate governance issues. [5] “For a bottom-line company like Wal-Mart, that was a significant step,” observes Bruce K. Packard, a corporate attorney at Dallas-based law firm Davis Munck P.C. who has advised several boards and audit committees concerning their codes of social responsibility. [5]

Our 5-year corporate social responsibility commitment and goals are focused on 3 priorities: diversity and social inclusion, economic empowerment, and environmental sustainability. [9] SAN FRANCISCO–( BUSINESS WIRE )–Wells Fargo & Company (NYSE: WFC) announced today an integrated, company-wide corporate social responsibility (CSR) strategy to address global social, economic, and environmental challenges over the next five years through products and services, culture and operations, and philanthropy. [10] Our 2017 Corporate Social Responsibility report has been prepared in accordance with the Core option of the Global Reporting Initiative (GRI) Standards Sustainability Reporting Guidelines. [9]

There are upwards of 50 global and domestic guidelines by which companies can measure their social responsibility efforts. [5] The following 10 companies stand out as prime examples of how social responsibility can be productively coupled with sound strategies to advance goodwill, while building sustainable and impressive businesses. [5]

“What the GRI accomplished was to take the best practices in the area of human rights, labor relations, environmental management, and sustainable development, and craft them into guidelines that enable any corporation to produce one comprehensive report,” says Jeffrey Hollander, author of What Matters Most: How a Small Group of Pioneers Is Teaching Social Responsibility to Big Business and Why Big Business Is Listening. [5] With this in mind, it created C.A.F.E. Practices, a set of guidelines to achieve product quality, economic accountability, social responsibility and environmental leadership. [5] In the new paradigm of social responsibility, stakeholders also could include socially responsible investor organizations, consisting of investors who make investment decisions using various social and ethical screens. [5]

POSSIBLY USEFUL

For many firms, general operating goals and objectives have not been well integrated with strategy, vision, and mission, so it may not be surprising that social and environmental goals, in particular, have not gained much traction. [11] When an organization uses tools such as the Balanced Scorecard to manage goals and objectives, then there is a coherent vehicle for incorporating social and environmental objectives in the mix as well. [11]

Strategy : Integrating long-term economic, environmental, and social aspects in their business strategies while maintaining global competitiveness and brand reputation. [11] The Dow Jones Sustainability Index created a commonly accepted definition of CSR: “a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments (Sustainability, 2008).” [11]

Of the 74 percent that reported publicly, 82 percent had a defined corporate responsibility or sustainability strategy, and 77 percent had implemented management systems for their corporate responsibility goals. [11] GE combines environmental responsibility with the business strategy of providing the best wind energy devices. [11]

This report has been prepared in accordance with the GRI Standards: Core option, which we recognize as the most credible standard for reporting on environmental, social and governance performance issues most important to our business and stakeholders. [12] CSR reporting measures an organization’s economic, social, and environmental performance and impacts. [11]

Competing on social purpose requires managers to create value for all stakeholders–customers, the company, shareholders, and society at large–merging strategic acts of generosity with the diligent pursuit of brand goals. [3] Environmental efforts are receiving negative views given the belief that this would affect customer service. 24 Oppewal et al. (2006) found that not all CSR activities are attractive to consumers. 26 They recommended that retailers focus on one activity. 27 Becker-Olsen (2006) 28 found that if the social initiative done by the company is not aligned with other company goals it will have a negative impact. [1] Typically, they belong to firms that are good corporate citizens and are committed to progress on environmental and social goals. [3]

Marketing professors Vil and Bharadwaj have developed an approach they call “competing on social purpose,” which ties a brand’s most ambitious social aspirations to its most pressing growth needs. An effective strategy creates value by strengthening a brand’s key attributes or building new adjacencies. [3] To develop a social purpose strategy, managers should begin by identifying a set of social or environmental needs to which the brand can make a meaningful contribution. (For simplicity, we?ll use the term “social needs” to refer to both social and environmental concerns.) [3] One way a social purpose strategy can boost business performance is by enabling the brand to compete in adjacent markets. [3] Managers often struggle to reconcile corporate-level sustainability efforts, CSR programs, and social purpose strategies for their brands, causing them to misdirect brand marketing resources toward increasing consumer awareness of corporate-wide programs. [3] Managers often consider the fit between the social need and the brand as a criterion for evaluating social purpose strategies. [3] After considering social purpose ideas in the three domains, managers should pare the list to three or four social needs, and propose strategies for each, to be evaluated as final candidates for the brand’s social purpose. [3]

To ensure the proper allocation of resources, brand managers should clarify the roles of existing or potential social initiatives for the brand. [3] Astute corporations are allocating increasing internal resources to CSR investments that feature clear objectives and deliver measurable social outcomes. [13]

Some brands have integrated social purpose into their business models from the start: Think of Patagonia, TOMS, Warby Parker, and Seventh Generation. [3] Proponents of social purpose initiatives often argue that the programs can help the business grow. [3] To guide the prioritization and selection process, managers should gauge how the social purpose idea both generates business value and minimizes the company’s exposure to risk. [3] To create a more comprehensive set of choices, managers should explore social purpose ideas in three domains: brand heritage, customer tensions, and product externalities. [3] Brands increasingly use social purpose to guide marketing communications, inform product innovation, and steer investments toward social cause programs. [3] Consumers increasingly expect brands to have a social purpose, so many companies are taking social stands in very visible ways. [3] They should also consider how social purpose can create value by strengthening (or creating) brand attributes relevant to consumer choice in a given industry. [3] In defining how their social purpose programs will create value, managers should partner with organizations and individuals that are actively working on the front lines of the social issue. [3]

From a strategic perspective, the aim is to increase long-term profits and shareholder trust through positive public relations and high ethical standards to reduce business and legal risk by taking responsibility for corporate actions. [1] As a follow-up from the world summit on sustainable development in Johannesburg in 2000, the United Nations developed Millennium Development Goals (MDGs) with the implications for corporate responsibility, environmental, and health issues. [8]

Orts noted that the American Law Institute in its principles of corporate governance suggested that the primary objective of a company is to make profits for shareholders, but it still has to follow the law even if it is not cost effective ( American Law Institute, 1994 ). [8] It is also a challenge to businesses how to measure and report business performance in corporate responsibility and other areas where they have been active as members of the business community. [8] Businesses need to watch very carefully the codes of conduct and guidelines of the MDGs and the World Summit for Sustainable Development, to come forward to talk about what has to be done and how it is going to be delivered, and to continue to argue for the enabling frameworks for corporate responsibility at the international level, noted Kennedy. [8]

Despite this growth, a significant majority (59 percent) don’t have an active strategy for developing new business opportunities that arise from meeting corporate citizenship and sustainability (CC&S) needs. [14] Focusing on only those initiatives could limit the potential of a purpose-driven brand strategy or divert marketing resources meant to stimulate the brand’s growth toward corporate initiatives. [3]

Once a company decides which social need a brand will focus on, using the four dimensions of our framework to guide their selection, managers must determine how the brand strategy will create value for it. [3]

At the core, a social purpose business is crafted to achieve its economic and social goals together; the social mission and the goal of making money are indivisible from each other. [15] Our analysis of dozens of purpose-driven brand strategies revealed four ways a brand can create value for a social need. [3] Strategies that score highest across domains are the most likely to create value for the company and effectively address the targeted social need. [3]

Globalization of the world implicates the idea of global corporate citizenship in globally constituted civil society and brings in the need for clarity about how to enforce different regulations; to whom should the multinational company owe their loyalties—whether they should be an American company or a global company—and what would be a global company’s responsibilities in a broader civic sense. [8] Fifteen European Union countries are actively engaged in CSR regulation and public policy development. 121 CSR efforts and policies are different among countries, responding to the complexity and diversity of governmental, corporate and societal roles. [1]

By integrating CSR into core business processes and stakeholder management, organizations can achieve the ultimate goal of creating both social value and corporate value. [6] Its strategy is based on strict guidelines published in policies and charters, as well as social, environmental, and economic objectives, defined by the company’s executive management. [5] We set ambitious goals and make strategic investments to drive improvements in environmental sustainability, supply chain responsibility, diversity and inclusion, and social impact. [16] The difficulty of exercising “social responsibility” illustrates, of course, the great virtue of private competitive enterpriseit forces people to be responsible for their own actions and makes it difficult for them to “exploit” other people for either selfish or unselfish purposes. [17]

They want to share goals and values with their employer and be able to contribute ideas and solutions to help the company meet its social responsibilities. [15] Millennials have high expectations for the actions of business when it comes to social purpose and accountability; and they want to work for companies that uphold these values. [15] Businesses with a strong social purpose make intentional day-to-day decisions that support their social and environmental accountabilities and encode these purpose-driven practices into their processes so the company is aligned from the frontline to the C-suite. [15]

We are working to help achieve many of the UN Sustainable Development Goals (SDGs) through our corporate responsibility and sustainability strategies. [16] If a company’s purpose is to maximize shareholder returns, then sacrificing profits to other concerns is a violation of its fiduciary responsibility. [5] Our integrated approach to corporate responsibility and sustainability creates value for Intel and our stockholders by helping us mitigate risks, reduce costs, build brand value, and identify new market opportunities. [16]

Our Plan has three big goals to achieve, underpinned by nine commitments and targets spanning our social, environmental and economic performance across the value chain. [18] Profitability provides money needed to be self-sustaining for the purpose of achieving social and economic objectives such as benefit of a nation’s poorest, neediest people. [19] As a leading global financial-services company, we believe we have a significant role to play in providing thought leadership and delivering practical solutions to social, economic, and environmental challenges through our products and services, culture and operations, and philanthropy. [9] Shaping our CSR priorities (PDF) summarizes our overall approach to stakeholder engagement, including an overview of how we engaged with stakeholders to identify the key social, economic, and environmental topics that inform our reporting and our 2020 strategy and commitment. [9]

As part of this effort, Wells Fargo established new CSR goals, including significant commitments in home and small business lending, community investment, operational efficiency, and corporate philanthropy, among other things, through 2020. [10] Anyway, would it be short term, medium term, or long term profit? We are living in a world of risk and uncertainty and you will find in any textbook on corporate finance that the ultimate purpose of a business is to “maximize the value of the firm”. [19] A longtime veteran of the Company, Mayer previously served as Senior Executive Vice President and Chief Strategy Officer, where he was in charge of Corporate Strategy, Business Development, Acquisitions, Enterprise Information Technology, Innovation, Brand and Franchise Management, and Global Corporate Alliances. [20]

“Our strategy is focused on three priorities that we believe offer the greatest value to our business and society: diversity and social inclusion, economic empowerment, and environmental sustainability,” said Jon Campbell, head of Government and Community Relations for Wells Fargo. [10]

The U.S. tax bill is only one such example – regardless of a company’s jurisdiction, it is your responsibility to explain to shareholders how major legislative or regulatory changes will impact not just next year’s balance sheet, but also your long-term strategy for growth. [21]

The social objectives of a business pertain to goals for the business as it functions with other parts of society including individuals, other businesses, and institutions in the community. [22]

RANKED SELECTED SOURCES(22 source documents arranged by frequency of occurrence in the above report)

1. (22) Competing on Social Purpose

2. (10) Solved: Ethics And Corporate Social Responsibility In The . | Chegg.com

3. (7) 6.7 Integrating Goals and Objectives with Corporate Social Responsibility | Principles of Management

4. (7) Corporate Social Responsibility – Global Environmental Health in the 21st Century – NCBI Bookshelf

5. (6) Corporate social responsibility – Wikipedia

6. (4) Millennials Want Workplaces With Social Purpose. How Does Your Company Measure Up? – Talent Economy

7. (4) Goals and Reporting – Corporate Social Responsibility – Wells Fargo

8. (3) Wells Fargo Unveils Five-Year Corporate Social Responsibility Effort | Wells Fargo Online Newsroom

9. (3) Corporate Social Responsibility

10. (2) Why Making Money Is Not Enough

11. (2) Strategic Corporate Social Responsibility | OnStrategy Resources

12. (1) goals & reporting

13. (1) The Five Elements of the Best CSR Programs

14. (1) Milton Friedman and the Social Responsibility of Business | GreenBiz

15. (1) The Social Responsibility of Business is to Increase its Profits, by Milton Friedman

16. (1) Sustainable Living | Unilever global company website

17. (1) What Is a Business? | Boundless Business

18. (1) About – Leadership, Management Team, Global, History, Awards, Corporate Responsibility – The Walt Disney Company

19. (1) Larry Fink’s Letter to CEOs | BlackRock

20. (1) Business Objectives: Definition, Purpose & Types – Video & Lesson Transcript | Study.com

21. (1) How Aims & Objectives Link to the Purpose of a Company | Chron.com

22. (1) Corporate Social Responsibility: 12 Undeniable Benefits