Corporate Social Responsibilities
Comparison of CSR Practices
In the 21st century, attaining some degree of social responsibility is recognized as a business quality that most corporations use in their daily operations to keep being in business Enquist, Edvardsson, & Petros, 2008.
The inclusion of social responsibility into a corporation helps to form a connection between the corporation’s objectives with the idea of sustainable developments Samuel & Walter, 2009.
Corporate social responsibility helps corporations to show their ethical concern for sustainable development and that for their stakeholders. In this paper, a comparison of of three companies is given.
CSR practices of IKEA, Hennes & Mauritz (H&M) and Starbucks compared
H&M philosophy in conducting business as the third largest retailer of clothing in the world is to offer the best price for fashion and quality outfits. The issue of the quality by H&M does not only involve the final product but combines the company’s wholesome process. This includes the manufacturing system including sourcing of raw materials, their processing, transport, final product manufacture, sales and final use of the products. In its corporate social responsibility, H&M ensures safe working conditions as a measure to give meaning to its commitment to quality. On top of , the company enforces minimum use of resources and steps to minimize the effects of their actions on the surrounding Chaudhary & Krishin, 2007()
The H&M policy of fashion and quality at the best price is a step to ensure that consumers can easily embrace fashion at a sustainable cost. The company contracts well-known fashion icons and designers to produce limited edition collection with a sense of fashion and quality. To further take care of the end user convenience, the company has an online shopping channel and catalogue shopping facility. This affords the end user a convenient and cheap way to obtain their desired products and output of H&M Company. The main concerns for H&M in corporate social responsibility is condition of workers, banning child labor, ensure quality and low price Chaudhary & Krishin, 2007()
Starbucks
Starbucks seeks to establish itself as most respected and recognized brand by managing business conducts in manner that shows social and environmental concern. As a company that sources its raw material from coffee farmers, the company initiates its CSR in their interactions with the farmers. Starbucks ensure good treatment of workers by farmers by only sourcing their coffee from farms that observe good treatment of workers. To enforce this practice Starbucks has gone ahead to afford economic incentives to coffee supplies who follow and enforce the standards of good and fair treatment of workers. The standards also include production of coffee in a manner that is environmentally sustainable Enquist et al., 2008()
IKEA
IKEA corporate social responsibility focuses on creating a better life every day for the majority of people. This is reached by ensuring that the products have as little effect as possible on the surroundings and their manufacture considers and incorporates social responsibility. IKEA recognizes that a voluntary effort to achieve social and environmental responsibility goes a long way to ensure maximum spreading of its CSR steps. The IKEA way recognize that keeping a low profile about its CSR activities and making more efforts to action will go a long way towards achieving the desired standards. Its central belief observes that low publicity is the best publicity. As opposed to announcing their commitment to CSR, the company ensures it takes necessary actions towards improving their activities Enquist et al., 2008()
Comparison of the three companies in relation to their CSR implementation shows that the all companies use the triple bottom line approach that involves planet, people and profit. Their business model involves doing business activates that ensure social, environmental and economic benefits are attained by all means possible. The incorporation of CSR in a company way of operation facilitates the company’s ability to communicate its brand to the market and show their concern for their stakeholders. Although CSR implementation comes at an additional cost to the company, the resulting benefits are more sustainable comparably Enquist et al., 2008.
It might prove difficult to corporations combining their focus to make profit as well as remain responsible in the way they conduct business but never the less it can be done.
Announcing the company’s corporate responsibility serves as an advertisement step for the company’s brand and product. As seen in Starbucks’ and H&M activities, it helps their attachment in the market yielding to higher revenues. IKEA should also consider communications regarding their CSR activities and direct its activities towards profitability. Starbucks and H&M should on the other hand consider an increase in their CSR commitment and reduce their communication activities. This will serve to allow for greater impact on the society and environment similar to IKEA measures.
References
Chaudhary, K., & Krishin, V.R. (2007). Impact of Corporate Social Responsibility and Tranformational Leadership on Brand Community: An Experimental Study’. Global Business Review, 8(2), 205-220.
Enquist, B., Edvardsson, B., & Petros, S., S. (2008). Corporate Social Responsibility for Charity or for Service Business? . The Asian Journal of Quality, 9(1), 55-67.
Samuel, O.I., & Walter, L.F. (2009). Global Practices of Corporate Social Responsibility. Heidelberg: Springer.
