Programming Assignment代写 组织如何可以受益于投资企业社会责任
Corporate Social Responsibility (CSR) allows organisations to make business decisions based on ethical values, compliance with regulatory requirements and respect for people, the environment and the community.
This report identifies that CSR and Corporate Governance (CG) are inextricably linked and details the benefits organisations can gain from investing in CSR as part of an overall CG framework. The report uses a number of case studies to bestow the virtues of investing and administering CSR and CG to the benefit of organisations, and how an organisation can use CSR and CG to create new opportunities that can add value and increase profit.
Corporate Social Responsibility
While there is no single commonly accepted definition of corporate social responsibility, or CSR, it generally refers to business decision-making linked to ethical values, compliance with legal requirements, and respect for people, communities and the environment. BSR (2010).
A company can ensure that it is operating in a safe, ethical and responsible way and is contributing to protecting the environment while maintaining the health and safety of employees, customers, suppliers and the community, by performing valid and functioning CSR policies.
Many companies have a number of polices that help define the overall commitment to CSR. Appendix A details a number of typical CSR polices.
Corporate Social Responsibility and Corporate Governance are equally as important to an organisation and therefore should be inextricably linked. Organisations that have a well defined and workable corporate governance program tend to find that this programme helps solve CSR issues. CG works more effectively if a corresponding CSR effort is undertaken. Organisations make decisions based on demands of stakeholders, which helps create value for those stakeholders resulting in increased profitability.
Thompson et al (2007) argue that it is vital that the strategic leader ensures that there is a strong, competent and balanced executive team at the head of the organisation.
Thompson et al (2007) also argue that the role and contribution of part time non executive directors is key, as they are responsible for providing reality checks as well as bringing experience and expertise.
A number of corporate governance principles and governance codes have been developed over the years to help organisations perform good corporate governance.
Cadbury issued the first corporate governance code in 1992. There have been a number of iterations of the code since, up to the UK Corporate Governance Code of 2010. Cadbury was the first organisation to:
Look after employee welfare.
Instigate Corporate Governance.
Live up to there CSR policy.
A timeline of governance code iterations is detailed in Appendix B.
The Cadbury report issued in December 1992 looked into the performance and rewards of boards and resulted in greater transparency and accountability in boardroom proceedings. It also recommended that the board should have three non-executive directors and the role of chairman and chief executive should be held by different people. CIPD (2010)
The report was designed to create a code of best practice with the main point concerning appointment of non-executive directors and audit committees to oversee financial aspects of an organisation and also the separation of chairman and CEO. This ensures that power is spread throughout a board and does not lie with one individual, such as Sir Fred Goodwin at RBS.
It is perhaps ironic that Cadbury has had a number of corporate governance and CSR issues over the last few years. “Kraft to switch Cadbury jobs to Zurich” BBC News (2010) and “Cadbury workers ‘sacked twice” BBC News (2010) where ethical issues and a lack of corporate governance has had an adverse effect on how Cadbury employees are treated and the perception of the company has suffered a result.
The board of Cadbury accepted a takeover by Kraft in 2010, who immediately decided to close down one of the Cadbury’s factories despite stating the factory would remain open during takeover negotiations. This is obviously a breakdown in corporate governance, and CSR ethics, which harms the reputation of Cadbury that they have built up over the years.
Smerdon (2004) developed the Shareholder Value theory that argues that unless companies look after suppliers, customers, members of staff and the environment, shareholder value is likely to suffer. Smerdon (2004) through the Stakeholder theory also argues that “shareholder value has failed”. Cadbury, in the instances described above are obviously not looking after employees so according to Smerdon, shareholder value is likely to suffer.
Programming Assignment代写 组织如何可以受益于投资企业社会责任