Role of Corporate Social Responsibility in Modern Business Models

2295 words (9 pages) Business Assignment

23rd Sep 2020 Business Assignment Reference this

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Abstract

This article focuses on CSR related concepts and mentions how to apply them within the organization and current flaws. Take David Jones as an example to find out if the company is CSR compliant. Explore the wages and conditions of the most crucial supplier countries. Identify and analyze shortcomings in the supply chain and propose appropriate measures to improve. Finally, the author would like to put forward his views on the business model of the global apparel industry.

Introduction

What is corporate social responsibility(CSR)? CSR is how to distinguish what is right and what is wrong. The management responsibility of a company is to make the right choices and actions for the benefits and well-being of society. Although the definition of corporate social responsibility is simple, different people have different views on what actions can bring benefits to society. Corporate social responsibility involves many problems, many of which are ambiguous to define whether it is good or bad. Managers must make the final decision, and their position and actions are consistent with sustainability for their company's performance. They must consider the impact of their policies, cultures, values, and motivations on environmental, social, and corporate bottom lines on sustainability issues ( Samson, 2017).

The discussion of corporate citizenship, social responsibility, and sustainability is defined by narrow commercial interests and limits the interests of external stakeholders. Subhabrata provides another view that corporate citizenship, corporate social responsibility, and corporate sustainability are the ideological movements designed to legitimize the power of large firms (Mitchell 1989). These discussions involve a common theme: the relationship between business and society. While the relationship between significant business and society has been and continues to be an economy, the growing public concern for social and environmental impacts of economic growth and increased social welfare in the legislative field and environmental protection has led to the environmental assessment of many businesses and the environment affects their business activities. However, Windsor (2001) believes that these arguments are always base on core interests, not social interests, to represent and build the relationship between business and society (Banerjee, 2008).

Corporate social responsibility(CSR) became more critical in today's corporation.  It is one of the considerations in leader management. Managers must consider the social, government, and environment when they make a decision. It will let the manager make a wiser decision. However, it has a shortcoming which is distinguished. Most of the time, it had both good and bad sides. It let people cannot find the perfect solution.

The method and criteria used to evaluate CSR are some of the critical issues. The importance of CSR in investors, analysts, managers, governments, and the media continues to grow, but the assessment methods have not kept pace with the times. CSR can be measured with mathematical tools. Robert et al. introduced a new method for measuring CSR. Robert et al. created an improved measurement technique. The characteristics of different aspects of the CSR are treated as test questions of different weights. Therefore, “difficult” CSR activities have a more significant impact on the company's score than “simple” CSR activities. This approach produces a more reliable approach to business comparison than standard methods. For example, we show that companies like Apple may not be as "good" as previously thought, and companies like Wal-Mart may perform better than they usually think(Robert, 2016).

Today, information explosions make it easier for people to access information, making it easier for people to influence company decisions. It makes CSR more challenging to measure. Moreover, now, there is no universal standard for CSR.

This report will take one corporation from the 2019 ethical fashion guide as an example to examine how is CSR to influence to the corporation.

Discussion

Select David Jones from the 2019 ethical fashion guide as the investigated corporation. To check if the corporation commits the CSR rules or not? On David Jones's official website, we found that David Jones requires its suppliers to comply with the Supplier Code of Conduct. The Supplier Code of Conduct contains three elements in the CSR. The Code of Conduct constrains environmental, social, and ethical issues in the supply chain and sets minimum requirements for the business to be carried out. The Supplier Code of Conduct has four elements: ensuring that safe and fair working conditions comply with ETI's basic specifications, ensuring integrity and transparency between David Jones and supply chain partners, and improving David Jones' operational control. External environmental outcomes to protect the welfare of animals(Dando, 2003).

David Jones, through direct client contributions, employee fundraising, cash donations, in-kind donations, payroll, and volunteering. Committed to strengthening and making meaningful contributions to the communities in which we operate. Collaborate with long-term charitable partners and create value to generate positive social impact. Indigenous and Torres Strait Islander communities are empowered to implement the plan. It also cares about the health of the team and its clients and assists in the early detection of breast cancer.

David Jones has several policies in place to determine the compliance of our supply chain. Reduce greenhouse gas emissions, reduce waste, and ensure responsible use and reuse of natural resources. In the meantime, we are committed to considering new business methods to transition to a future low carbon and circular economy. Reduce the environmental impact of the entire business operations and supply chain by investing in programs that optimize energy use, increase landfill shifts, reduce packaging impact, and reduce water and natural resource consumption.

David Jones signed a fire and construction safety agreement with Bangladesh. The agreement is an independent and legally binding agreement between the brand and the union, working together on the safe and healthy clothing and textile industry in Bangladesh. In 2013, the collapse of the Lana Plaza factory in Bangladesh caused thousands of deaths, and thousands of people were seriously injured. The agreement was signed after the accident. The goal is to ensure all workers have a safe environment to work without fear of building collapse, fire, or other preventable accidents.

The first-tier plants that produce David Jones' own-brand products are mainly distributed in four countries: China (60%), Italy (11%), India (11%) and Australia (3%). China is the largest supplier and contains the most factories. David Jones is Australia's leading high-end retailer. Welsh-born immigrant David Jones first opened a store on the corner of George and Barak Street on May 24, 1838. The store is also the predecessor of David Jones. The original store was designed to sell the best and most unique items for everyday use. Because it locates at the opposite of the General Post Office, it slowly prospered. Not only is it supported by local nostalgia, but it also attracts the villagers. People often buy goods at his store. The store is facing difficulties due to poor management. Mr. David Jones returned to regain control of the store after retirement, making the company regained its success. The department store has the first hydraulic lift in the local city to transport customers to the store.

Moreover, innovative designs and imported stores make customers feel new. Mailing service is available to ship goods anywhere in Australia. It eventually became a public company in 1906.

Conclusion

David Jones has issued a four-page "Code of Conduct" and hopes that each supplier will sign. To ensure that David Jones can stand up to the welfare of factory workers. However, this concept is not only flawed, but the document itself has problems. The Ethical Trading Initiative (ETI) is a UK organization dedicated to promoting a set of international supplier guidelines. Logically, David Jones' signature is meaningless unless its suppliers support their commitment. Because the problem with these agreements is that they go beyond and bypass the laws, regulations, and practices set by the government of the supplier. The founders of ETI attempted to impose their worker welfare standards on countries where different standards are legally applicable.

When buying clothing from China, many factories have poor working conditions, but over time, this situation will soon disappear without the help of ETI. This change is brought about by government initiatives and the rise in the value of the clothing sector, which makes it an obligation for employers to provide better working conditions as a practical management issue. By forcing compliance with local factories, compliance audits become corrupt, or factories will be refused work.

The main drawback of this document is that suppliers must comply with local laws and ensure that workers are provided with the highest level of protection. The basic principles include employment is no child labor, the right to free choice, safe and healthy working conditions, wages Pay for life, work time is not excessive, no discrimination, and provide regular employment. These principles should be used together with the ETI Basic Law as a standard, whether based on local laws or fundamental principles, but local and national laws do not correspond to the ETI Declaration.

Recommendations

We can only see the text on the Internet to explain how David Jones took action to make the company comply with CSR standards, but there is no relevant material to prove it, and can not effectively convince people to believe. The model was used to analyze the responses of 1,257 respondents. The results show that consumers' perception of the transparency of power companies affects their willingness to participate in environmental project cooperation (Vaccaro, 2010). It illustrates the importance of transparency, and David Jones needs to work harder with transparency. Internet technology can be used to provide enterprises with an innovative tool to encourage companies to take social responsibility through “dynamic transparency” (Madsen, 2010).

A valid document should be provided to prove it. ETI should not be used as a quantitative standard because ETI laws override local laws, allowing companies to ignore local laws. To monitor compliance with this Code.

David Jones reserves the right to review any suppliers and their supply chain partners involved in the production. The review can be conducted with or without notice. This includes interviewing workers and checking that the factory complies with the Code. David Jones should take steps to make the supplier meet the company's company requirements. Check that the supplier's standards are consistent with the minimum legal working conditions. It is not easy to check the attitude of the supplier.

Reflection

CSR can be used as a standard for companies to ensure that their actions and decisions are consistent with the environment, society, and company bottom line. So with the development of technology, CSR can be quantified, which makes it easier for managers to know whether the company has met the standards. Therefore, take corresponding measures to specify the corresponding decisions to improve the company and make it an excellent reputation before the people. Today's clothing is only two to three weeks from design to production, logistics, and finally to sales, which is much faster than traditional fashion. Thanks to CSR, apparel companies can quickly learn the current trends and design the appropriate clothing. Also, the price is low, attracting a large number of consumers. Moreover, some civilian brands have chosen the store to open the store next to the top stores, on the other hand, to enhance the brand's visibility and meet the consumer's vanity.

Reference list

  • Banerjee, SB 2008, ‘Corporate Social Responsibility: The Good, the Bad and the Ugly’, Critical Sociology, vol 34, no. 1, pp.51–79.
  • Mitchell, NJ 1990, The Generous Corporation: A Political Analysis of Economic Power, Yale University Press, New Haven,
  • Samson, D, Donnet, T & Daft, R 2017, Management 6th Asia Pacific Edition, South Melbourne.
  • Windsor, D 2001, Corporate Citizenship: Evolution and Interpretation, Perspectives on Corporate Citizenship, vol 1, no 70, pp. 39–52.
  • Carroll, RJ 2016, Using item response theory to improve measurement in strategic management research: An application to corporate social responsibility, Strategic Management Journal, vol 37, no 1, pp.66–85.
  • Dando, N & Swift, T 2003, Transparency and Assurance Minding the Credibility Gap, Journal of Business Ethics, vol 44, no 2, pp.195–200.
  • Vaccaro, A & Patiño ED 2010, Corporate Transparency and Green Management, Journal of Business Ethics, vol 95, no 3, pp.487–506.
  • Madsen, P 2009, Dynamic Transparency, Prudential Justice, and Corporate Transformation: Becoming Socially Responsible in the Internet Age, Journal of Business Ethics, vol 90, no 4, pp.639–648.

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