Corporate Social Responsibility and Sustainable Business

Assignment Brief

Corporate Social Responsibility and Sustainable Business

The outline of the learning log: Part 1 (approx. 2200 words)

• Introduction
• Theoretical section
• The context of CSR e.g. definition, debates around the concept or definition
• The theory of CSR e.g. stakeholder theory, institutional theory or Carroll CSR framework
• Application section
• The application and management of CSR in the ‘real’ world (Here, you have to select two companies from two different industries.

You will then apply your theoretical learning to examine and compare the CSR practices of these two companies. You can focus on areas such as how they define CSR and manage stakeholders, the nature of CSR (Philanthropic vs Strategic CSR) and what is their strategic intent (legal compliance, business case or market creation). Sources such as corporate website and annual reports can provide essential information on CSR practices

• Conclusion Part 2 (approx. 300 words)
• Reflection: A couple of concluding paragraphs, using your reflective diary material, in which you reflect on your experience of the learning set and what you have learned from the module as a whole. Here, you can also include key feedbacks you received and given

SEMESTER 2 2018/19 Part 3

A copy of your individual learning programme (Appendix) The marking assessment criteria are:

• Shows knowledge and understanding of theory and concepts (30%)
• Ability to show strategic thinking and evidences of how CSR can be applied within a business context (35%)
• Well-structured with appropriate introduction and conclusions (10%)
• Ability to reflect on your learning set (15%)
• Referencing and use English language (10%)

Sample Answer

Corporate Social Responsibility and Sustainable Business

Part 1: Learning Log 

Introduction

Corporate Social Responsibility (CSR) has emerged as a vital area within the global business environment. As businesses face increasing pressure to be socially and environmentally accountable, CSR has evolved from a voluntary activity to a strategic necessity. This learning log critically examines the theoretical underpinnings of CSR and applies these to real-world corporate contexts to assess how businesses adopt and implement CSR strategies. It also reflects on my understanding and development through the module.

Theoretical Section

The Context of CSR

CSR refers to a business approach that contributes to sustainable development by delivering economic, social, and environmental benefits for all stakeholders. The concept has been subject to various interpretations, with some critics arguing that it distracts from the fundamental profit-driven purpose of businesses. However, modern CSR is viewed as a strategic tool for achieving competitive advantage while addressing stakeholder needs.

Debates Around the Concept of CSR

CSR is often debated regarding its voluntariness, scope, and impact. Traditional views, like Friedman (1970), argue that the sole responsibility of business is to increase profits. In contrast, stakeholder theorists argue that companies must consider the interests of all stakeholders, including employees, communities, and the environment. Another debate surrounds whether CSR should be philanthropic or strategic.

CSR Theories

1. Stakeholder Theory (Freeman, 1984):

   • Argues that companies should create value for all stakeholders, not just shareholders.

   • Encourages active stakeholder engagement and responsiveness.

2. Carroll`s Pyramid of CSR (1991):

   • Outlines four levels of CSR: economic, legal, ethical, and philanthropic responsibilities.

   • Suggests businesses should meet economic obligations while going beyond compliance to ethical and philanthropic actions.

3. Institutional Theory:

   • Focuses on how organisational behaviour is shaped by institutional norms and expectations.

   • Highlights that CSR practices are often adopted to gain legitimacy and conform to societal expectations.

Application Section

Company Selection

• Company A: Unilever (FMCG Industry)

• Company B: BMW (Automotive Industry)

CSR Practices of Unilever

Unilever demonstrates strategic CSR through its Sustainable Living Plan, focusing on health, hygiene, environmental impact, and improving livelihoods. The company defines CSR as a way to deliver long-term value through sustainable practices.

• Stakeholder Management:

  • Engages NGOs, suppliers, and local communities.

  • Emphasises transparency and collaboration.

• Nature of CSR:

  • Strategic CSR: Integrated into the core business strategy.

  • Focuses on sustainability and long-term value creation.

• Strategic Intent:

  • Business case and market creation.

  • Targets emerging markets through inclusive business models.

Continued...