Corporate social responsibility is a company’s awareness of responsibility towards the community and environment in regards to its operating location. Companies express this social responsibility through their waste and pollution reduction processes, educational and social programs, and earning satisfactory returns on the hired resources.
Examples of such CSR implementations include: giving back to the community, helping improve the community, and helping reduce carbon emissions or improving the overall environment through recycling. Numerous industries implement these practices into their business policies; a good illustration of CSR is Tom’s Shoes. Tom’s shoes are a company in which one pair of shoes are donated to needy children …show more content…
when a customer purchases displayed products.
This report will define CSR and outline the legal requirements and disadvantages of corporate social responsibility. It will also give recommendations for large businesses (Mansfield Tourism and Hospitality Pty Ltd) to improve their community and company.
Legal Requirements
Legal requirements are essential for businesses’ Corporate Social Responsibility as consequences of breaking such requirements impact the community and environment, as well as the businesses’ reputation. Legal requirements are based upon human rights, such as the right to clean drinking water and the payment of fair wages. They are also reliant upon business ethics, which are expectations to maintain business standards in the employer’s code of conduct. Legal requirements are also acknowledged in the hospitality industry where hygiene, food, and safety are vital in a company’s ethical standards.
The hospitality industry includes many laws upon the hygiene of employees and the quality of food being presented to the community. A Food Act exists to protect customers/consumers from harmful illnesses from poor hygiene of food handlers and preparers (NSW Education & Communities). This Act incorporates that; businesses must abide by strict levels of hygiene, food must be edible and safe for consumption, food must be presented before the expiry date, and food transport must be transported by clean and well refrigerated vehicles. This Act is in place to ensure the safety of consumers and the employees to prevent harmful illnesses to be transferred through the accessibility of food. This can be directly related to corporate social responsibility, as healthy habits within the workplace can be reflected upon the community. Through a regime that follows legal requirements for a safe and risk-free environment, customers’ safety is ensured and this company can then be trusted throughout the community.
An example of ethical behaviour within the workplace can be as basic as; following company policy, honouring commitments, being paid fair wages and treating employees properly. Thus, breaching ethical behaviours breach legal policies within the workplace and will cause a ripple effect. This ripple effect travels from within the workplace to the community, as business practices affecting the community will decline in reputation and respect. In saying this, there are several drawbacks when incorporating CSR practices within the company.
Drawbacks/Disadvantages
There are numerous advantages to Corporate Social Responsibility; however, there are some disadvantages in maintaining CSR.
Firstly, there are the financial disadvantages to maintaining a healthy social responsibility of the business. Major corporations are able to assemble a budget in order to look after their social responsibility to the community, but this case does not always reside in smaller businesses (Corporate Social Responsibility & Human Rights, 2008). Thus, disadvantaging small businesses to socially benefit from the community in regards to popularity and profits.
Another disadvantage when implementing corporate social responsibility is loss in competition. Competition is a major factor for companies as it keeps them motivated in terms of developing strategies to strive and increasing reputation in order gain popularity and profits. However, if a company were to implement CSR their profits and resources will be cut down due to the company giving back to the community (Corporate Social Responsibility & Human Rights, 2008). This will put a competitive disadvantage to the company and the competitors will thrive in profits and resources if their company does not implement CSR (see Appendix 1). Corporate social responsibility is not entirely problematic as various industries gain their popularity through …show more content…
CSR.
Industry example
Most industries implement CSR in their daily practices to ensure the respect and popularity of the community through the use of giving back to the community in a positive manner.
There are many examples of CSR in the hospitality industry; such an example includes Ben and Jerry's ice cream.
This Australian company applies fair trade ingredients into their desserts, and have developed their own dairy farm program in Vermont. This implementation in the company allows customers to know that the dairy farmers are being treated fairly and can thrive in the global economy. Ben and Jerry’s also incorporate cage-free eggs to benefit from the chickens. These certified humane cage free standards provide this company with higher quality eggs as the hens have wholesome, nutritious food and sufficient space to engage in normal behaviours (Ben and Jerry's, 2014), thus not inhumanely breeding hens for the purpose of laying eggs. This allows the hens to become more beneficial to the community as higher quality eggs have been
laid.
This example give a clear understanding as to the company’s actions through CSR can not only benefit the community, but to the company itself. CSR practices, such as Ben and Jerry’s, give the company a reputation for not leeching off occupied farms and will indirectly inform the community that the business supports something good. Thus, the community is now more likely to purchase desserts at Ben and Jerry’s as they have developed their own farm, ensuring the quality of products presented.
Conclusion
In conclusion, Corporate Social Responsibility and its many components are vital for all businesses and should be incorporated in every business when possible. CSR provides a profitable and healthy business whilst giving back to the community, which, in turn, has many advantages and disadvantages. The overall result of implementations of CSR adds up to benefit the business and community and builds a reputation for a strong company. Also, the incorporation of CSR gives insight to the community showing that most companies are not ‘greedy’ or ‘selfish’ and creates a positive attitude around the community in which they are located.
Recommendations
Recommendations can be made to the Mansfield Tourism and Hospitality Incorporation. This company can be improved upon through the use of CSR policies. Such recommendations include; preparation of food must meet health and safety standards and toleration of legal requirements.
As this company relies upon hospitality requirements, it is of the upmost important that Mansfield Tourism and Hospitality implements practices in regards to its preparation of food. As stated above (in legal requirements), the food presented to the public must meet health and safety standards. Practices to ensure this standard is maintained may include; prevention of contamination (keep chemicals and insects away from food), keeping hands and the kitchen clean, handling food safely (avoid handling when sick, keep uncooked food away from cooked), and keeping cold food and hot food in appropriate environments. These recommendations can also be linked to legal obligations as these responsibilities provide a guide as to the correct and incorrect procedures.
The responsibility of legal requirements in a business is vital for an enlarging empire as it provides examples of current correct procedures. These legal requirements include fair wages, clean food and water, uncontaminated food prior to sale, and handling of food must be dealt with at a strict level of hygiene. Practices to ensure these standards are met may include; consequences of breaking requirements (such as warnings), and supply of hygienic chemicals to be kept away from food and easily accessible to employees.