This sample will let you know about:
- Discuss about the corporate social responsibility.
- Explain about the Model of social responsibility.
- Discuss about the Skill Audit.
The present essay is about the concept of social responsibility is to increase profit or not. Corporate social responsibility is a concept which assist the companies in taking care of the environment and the society in which business is operating. The present discussion took place keeping in mind Red & Blue restaurant and its say on CSR. This discussion took place in order to prove the statement wrong that CSR is directed towards increasing the profits. The discussion evaluated different roles of CSR other than increase in profits. In the end it was agreed that CSR not aims at increasing profits only but it is a wide area which includes taking care of all stakeholder and their needs, increase in goodwill, increasing consumer satisfaction and many other related issues.
Corporate social responsibility is the activity which needs to be followed by companies in order to maintain and develop environment in which they operate. Thus, it is very necessary for company to maintain its responsibility towards the society and environment because this is a process which help companies in producing a positive impact over the society (Baik, Farber and Lee, 2016). The present essay will discuss topic that is social responsibility of business is to earn profits only. This topic will be discussed in regard of Red & Blue restaurant which is an independently owned restaurant chain in Liverpool and aims at serving fresh food and drinks to consumers. This statement will be critically evaluated with help of different theories and examples. Want to get Assignment Samples?Talk to our Experts!
Critically discussing whether social responsibility of business is to increase its profits or not
Range of business social responsibilities
In this modern and highly competitive world it is very crucial for businesses to take care of the environment in which company is operating. However, this is majorly pertaining to the fact that if business operates in isolation that is without taking care of environment then society will not like the business. Thus, to maintain a good image within market and among the society most important thing for businesses is to maintain and protect environment and society. The corporate social responsibility is not only limited to environment or society but this also includes consumers, employees, ethical working and many other practices which are correct at the moral basis.
There are many different areas where business needs to be responsible for the development of society and environment. It is mostly assumed that social responsibility of business is to increase the profits only. But this is not at all correct as the CSR is spread to a large variety of responsibilities. The profit earning is important for maintaining corporate social responsibility because companies can work in socially responsible manner only when they have extra money. This will be only there is the company earns a good amount of money as this money will be used for managing the environment. Thus, it can be said that increasing profits of company can be a part of being socially responsible but this is not only responsibility of the company.
Along with increasing profits there are many different areas where company needs to be socially responsible for benefit of both company as well as the society and all stakeholders of the company as well (Cui, Jo and Na, 2018). The competition is very high in the environment and consumers are also becoming conscious about protection of environment and society. Thus, it is the responsibility of companies in order to increase their consumers and sales they have to work in effective manner and take measures in order to protect environment. This will in turn protect the environment and increase the sales and as a result of this the profits of the company will increase. Hence, this increase in profit will in turn be used by companies in protecting the environment and investing in betterment of society (Albuquerque, Koskinen and Zhang, 2019). The companies many a time donate their profit share to the people who need them or to some charities.
Another social responsibility of business in maintaining CSR is that they must take into consideration employees of company as well. This is pertaining to fact that if employees are mistreated and company is taking measures in protection of environment is of no use. Thus, it is necessary for companies to use good policies for the benefit of employees and to abide by all human and labour laws which are applicable to company. For maintaining this responsibility that is benefits of employees, Red & Blue restaurant provides 24 weeks paid holidays to both mom and dad at time of child birth. Also, company tries to maintain a good culture and ambience at workplace so that employees are motivated to work in effective manner. Ask for assignment help from our experts!
The other area of maintaining social responsibility for business is to satisfy consumers in proper and effective manner (Dyck and et.al., 2019). It is very necessary for companies to provide consumers all products and services of effective quality as if consumers are not sappy then they will not like products of company and this will decrease sales of company. Hence, for this it is very necessary for Red & Blue restaurant to provide a good quality food to its consumers in order to satisfy their needs and make them happy. This will be a tough job for restaurant as consumers comes from different cultural background and have different requirements. Thus, for managing the consumers in responsible manner it is the moral duty of restaurant to provide food products in accordance to their needs only.
Model of social responsibility
Thus, for effective working of the Red & Blue restaurant theory of TBL that is Triple Bottom Line can be implemented. This theory must be applied by restaurant as this theory states that company needs to maintain three basic line for managing its CSR issues (Leipziger, 2017). These three different aspects are social, environmental and economic. All these three aspects of model cover almost all areas for which restaurant is socially responsible. This model analyses performance of the restaurant on basis of three criterion that is environment, social and finance. If restaurant is good in managing all these three aspects then it can be said that the company is able to manage its CSR practices in effective and efficient manner (Liang and Renneboog, 2017).
This model also includes profit as a criterion because money is also necessary for survival of the business. But this does not mean that restaurant need to focus only on profit but also on other two areas that is people and planet. In accordance to this model all these three areas are crucial for success of Red & Blue restaurant. The major reason underlying this fact is that these three areas are more crucial for the success of company. This model states that if restaurant focus only on the profits by ignoring other two areas then it cannot assume to be successful in its operations. It is so because other two areas that is people and environment are more important than earning profits. This is pertaining to the fact that if society will not like the product and services of restaurant then they will not consume it and hence profits of restaurant will fall down.
In the similar way if restaurant does not take care of environment then also consumers will not like this fact and will not consumer products and services of Red & Blue restaurant. Moreover, for the successful working of Red & Blue restaurant it is very crucial to take all three aspects of this model into consideration. Hence, for society and environment it is necessary for restaurant to manage the waste of food in proper manner. For effective use of the food which is left by many consumers can be used to give to poor people or people who have no access to good quality food (Schrempf-Stirling, Palazzo and Phillips, 2016). Thus, it is very important for restaurant to maintain effective balance between the environment and sustainability. Also, resources are very limited and scarce and competition and user of these resources are high. Thus, it is responsibility of restaurant to use the limited resources in effective and optimal manner.
In case of people or society it is very necessary for Red & Blue restaurant to have effective measures in order to satisfy the needs of the people associated with restaurant that is consumers and employees of restaurant. These are major people which will be affected by the working of restaurant as they are more interested in profitability of company. For managing consumers Red & Blue restaurant’s responsibility of Red & Blue restaurant is to provide food products of effective quality and also, they must outline all the ingredients of food. The outlining of ingredients is necessary as this will build a trust among the consumers as they will know what are added to the food and whether it is of good quality or not (Wang and et.al., 2016).
For managing the profits of Red & Blue restaurant it is very necessary to work in ethical manner and earn the profits in actual way. This is majorly pertaining to the fact that if company is using wrong measures of earning money then it is not an ethical and correct way of working. Hence, for managing this responsibility it is very necessary for Red & Blue restaurant to maintain proper accounts and not to misuse any of the accounting principles (Crane, Matten and Spence, 2019). Also, they must get their accounts audited from time to time. In addition to this company must also not charge a very high profit margin such that they just focus on profit earning and ignores the quality. This will impact two factors of Triple Bottom line model that is profit as it will be earned by using wrong measure. Another is people and it will be affected because the consumers will have to pay high prices for products which are not of good quality.
Ethics is defined as the moral values which need to be considered at time of doing the work. this includes what is right and what is wrong on the basis of moral. The business ethics is defined as the practice of business of doing the work which is ethically correct and does not include any fraudulent practices. It is necessary for the companies to maintain business ethics because without this the company cannot run successfully.
For successfully managing the CSR it is very crucial for Red & Blue restaurant to have effective skills of audit. The audit skills help company in analysing the fact that there are many frequent and fast changes taking place within environment and it is very dynamic. Thus, it is very crucial for companies to continuously monitor all changes taking place and changes which are impacting working of company must be adapted by company. Also, for this most crucial audit skill is of market research as needs and preferences of consumers changes very frequently and this affects working of company to a great extent. In addition to this another major audit skill is of monitoring and evaluating. This is necessary as the changes needs to be evaluated in proper manner and then it is necessary for monitoring also (Grayson and Hodges, 2017). This monitoring will help company in knowing that whether the intended change has been implemented in same manner as was required by company or not. Get help from our Coursework Helper Now!!
For instance, Red & Blue restaurant is having god audit skill as they are good at researching the needs and taste of the consumers and ethically in correct manner adapt to these changes. This is done so that the consumers are happy and satisfied and this will help restaurant in earn money in proper and correct manner.
From the above study it can be summarised that managing corporate social responsibility and ethics and sustainability is very necessary for the success of business. The major reason behind this is that in current competitive world it is very crucial for businesses to manage environment and direct its working towards protection and safeguarding of environment. This is helpful for company as it is beneficial in improving the state of environment and this in turn will increase goodwill and market position of companies. Moreover, managing ethical and sustainable working is necessary along with caring of environment.
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