corporate social responsibility
Corporate social responsibility is the balanced methodology for organisations to address economic, environmental and social issues in a way that aims to benefit individuals, communities and society. In this essay we will put our opinions about leadership, and how it can have a significant impact on how a CSR agenda and its related activities are developed and implemented. We will then focus on the comments made by Chin, Bambrick and Treviño (2013) and see if it’s more related to the behaviour theories of leadership or contingency theories of leadership. We then move to the topic on superficial CSR compared to authentic CSR and finally we will discuss the roles of employees and leaders in developing and implementing CSR activities within an organisation.
CEO’s political orientations will influence how a CSR agenda and how it’s activities are developed and implemented. This is proved in Chin et al (2013) article when they compare two different CEO’s political ideology, conservatism vs. liberalism and what influences they have on an organisation’s CSR practices. Based on this article research, liberal managers will emphasise more on CSR than conservative managers. This is based on the fact that they envision CSR as a benefit for the firm’s stakeholders and believe that CSR is essential. On the other hand conservatism managers believe that a focus on shareholders wealth is more important, by utilizing resources more effectively and efficiently. Also liberal managers will still emphasise CSR even when recent financial performances is low, whereas conservative CEO will advance on CSR initiatives only when financial performances allows.
An example of an organisation that uses a more liberal approach is CCA; they invested $450 million into producing Mount Franklin easy-crush bottles made with 35% less PET plastic than normal bottles (Coca-Cola Amatil 2012). This will then give them a pathway to increase stakeholder allegiance, which they will expect to improve
CEO’s political orientations will influence how a CSR agenda and how it’s activities are developed and implemented. This is proved in Chin et al (2013) article when they compare two different CEO’s political ideology, conservatism vs. liberalism and what influences they have on an organisation’s CSR practices. Based on this article research, liberal managers will emphasise more on CSR than conservative managers. This is based on the fact that they envision CSR as a benefit for the firm’s stakeholders and believe that CSR is essential. On the other hand conservatism managers believe that a focus on shareholders wealth is more important, by utilizing resources more effectively and efficiently. Also liberal managers will still emphasise CSR even when recent financial performances is low, whereas conservative CEO will advance on CSR initiatives only when financial performances allows.
An example of an organisation that uses a more liberal approach is CCA; they invested $450 million into producing Mount Franklin easy-crush bottles made with 35% less PET plastic than normal bottles (Coca-Cola Amatil 2012). This will then give them a pathway to increase stakeholder allegiance, which they will expect to improve
References: Chin, MK, Hambrick, DC and Treviño, LK 2013, 'Political Ideologies of CEOs: The Influence of Executives’ Values on Corporate Social Responsibility ', Administrative Science Quarterly, Vol. 58, No. 2, pp. 197–232. McShane, L and Cunningham, P 2012, ‘To Thine Own Self Be True? Employees’ Judgments of the Authenticity of Their Organisation’s Corporate Social Responsibility Program’, Journal of Business Ethics, Vol. 108, No. 1, pp. 81–100. Wilsey, M & Lichtig, S, 2013, ‘The Nike Controversy’, viewed 5 September 2013, < http://www.stanford.edu/class/e297c/trade_environment/wheeling/hnike.html> ‘Media release’ 2012, Coca-Cola Amatil, viewed 5 September 2013, < http://ccamatil.com/InvestorRelations/md/2012/Mount%20Franklin%20Easy%20Crush%20230412.pdf> Skilton, P, 2013, ‘Authenticity, appropriation and intrusion as issues in corporate social responsibility’, Washington state university, pp. 13-14, Viewed 6 September 2013, < http://digitalcommons.tacoma.uw.edu/cgi/viewcontent.cgi?article=1006&context=clsr_academic> Cornish, M, Hall, J, O’Mara, E, 2010, ‘management dynamics’, Pearson, 4th ed. pp. 175 – 178.