The Corporate Social Responsibility
All registered companies and organizations need to be responsible to the community. It displays the organization’s concern towards the environment and society. Many organizations would only want to focus on profitability and shareholder’s gains.
Consumers would want to know what the organization is doing about the environment and society (Crane, 2008). C corporation’s initiatives that benefit the society include conserving the environment. It has started training its workers on the importance of making the environment green by planting trees and protecting them. They also intend to start distributing brochures about environmental concerns. They would be wearing the organization’s T-shirts showing the products they sell. It would be a major challenge because customers would recognize their services and products.
The company can incorporate CSR into value creation that embraces innovation and sustains the business model. It can also use it as the risk management tool to comply with the current rules and requirements. The other perspective would be to allow the organization to do philanthropic activities. It involves providing funding and skills (Crane, 2008). It would be advisable to embrace all or some of the values. The organization would enjoy the cost benefits. Otherwise, competitors may copy and make the organization’s initiatives to become futile (Crane, 2008).
B Corporation can take the concerns about health issues. The Television and Radio can be a good place to start. Radios can have a three-minute announcement about health problems and how to get solutions on a daily basis. B can also sponsor some programs that give valuable lessons about health.
During the Television programs, the organization can also launch new adverts for the products and services in the market. Roadshows can be the other means of reaching out to the customers. The participants would receive free quality medical tests and reference to qualified physicians. The company would still innovatively add the competitor’s plans to its activities as long as it does not infringe on anyone’s rights.
The company needs to restructure to include the CSR program. The department can have a team leader and staff. It would create more jobs through employment. It would have to include the Research and Development activities. Customers would want to shop from retailers that embrace CSR (Hunnicutt, 2009). The company can partner with charitable organizations. The involvement of the customers and the public in making the choice of the charitable organization and other activities is crucial (Hunnicutt, 2009). It would enhance the organization’s credibility.
The steps involved in the entire process would require approvals and certifications. The team leader would have to be qualified in CSR activities. The company can obtain the social license from the community by engaging them and getting their support for the projects to carry out. The community leaders can lead the way through a vote. B can apply for the ISO certification by submitting its plan. The ISO officials would come to inspect the projects and provide guidelines. B would pay the registrations fees and officially receive its certification for CSR after approval.
Paying taxes into the public finances would provide essential public revenue for the government to meet economic and social objectives (Hunnicutt, 2009). B would ensure that it fully remits its income taxes, employer taxes, and property taxes to the government. It should also submit the VAT and employee taxes. The main beneficiaries are the consumers and society (Hunnicutt, 2009).
It is advisable to move forward with the program because it enhances the good image of the company. It also enables the management to become creative and more concerned about the welfare of the people. The best way to do this is to fully incorporate everyone in the organization.
The chart below gives a clear indication of B and C Corporation’s involvement in the CSR activities. B Corporation has become profitable.
Corp vs. B Corp comparison
|C Corp||B Corp|
|1.Gained customers due to the introduction of the CSR |
2. Managed to cut down on expenses.
|1. Gained more customers because of the unique introduction of the CSR program. |
2. Managed to pay taxes to improve the lives of people.
3. The shareholders gained more income on their dividends later.
4. The company gained more government support in its CSR plans.
5. Many people attended the free medical tests
6. The Non Governmental organization partnership bore fruit.
7. Many well wishers joined hands to support the company in the CSR program through giving their funds.
8. The program created more job opportunities.
9. They increased the staff salary because of increased profits.
|1. Stiff competition from B Corp. |
2. They did not pay all the required taxes
3. It did not commit itself fully to the CSR program.
4. It lost most of its shareholders because the decrease in sales.
|1. At first the company spent a lot of funds on the program. |
2. Some shareholders left the company because they could not risk their investment.
3. Competition from C Corp.
Crane, A. (2008). The oxford handbook of corporate social responsibility. Oxford: Oxford University Press.
Hunnicutt, S. (2009). Corporate social responsibility. Detroit, MI: Greenhaven Press.