Introduction of Corporate Social Responsibility (CSR) in Businesses Today

            CSR or Corporate Social Responsibility has gained a lot of attention in the world of business at present. It is a concept that organizations should not be concerned with just profit. Keeping the environment safe is an aspect of CST while another is to make efforts for addressing different social issues like hunger and poverty. Social responsibility of a business is also expressed though its implemented ethical standards which includes how it is treating its customers, employees, and vendors. Apple Inc. has been chosen as the organization that adheres to social responsibility and Volkswagen as the organization that chose to neglect it. In the report, corporate social responsibility will be discussed in detail and different ethical and social problems being faced by organizations. Moving on, it will be analyzed just how CSR influences the operations of Apple Inc. and how the organization handles it. In the end, it will be explained why business should care about CSR and why it has become necessary for them to think about implementing CSR initiatives (Carroll & Shabana, 2010).

Corporate Social Responsibility in Businesses Today

        CSR or Corporate Social Responsibility has many other names including sustainable responsible business, social performance, corporate citizenship, and corporate conscience. It is like an incorporation of self-regulation into the model of business. The policy of CSR functions a self-regulating and built-in mechanism using which a business not only monitors but also ensures its compliance with the international norms, ethical standards, and law obligations. It can be said that the objective of CSR is to accept responsibility for the actions of an organization and promote a positive influence through its different processes and activities on stakeholders, communities, employees, consumers, and environment among other public members who might be recognized as the stakeholders for organization (Aguinis & Glavas, 2012).

        When it was the beginning of 1970s and ending of 1960s, corporate social responsibility as a term was starting to be commonly used after several multinational organizations created stakeholder. Stakeholder as a term referred to all those people who were influenced by the organizational activities and it was used for describing corporate owners who were beyond shareholders. It is argued by supporters that long-term revenues are generated by organizations when they are working with a perspective of CSR. Meanwhile, it is argued by critics that corporate social responsibility merely distracts organizations from their economic roles. Many other argue that CSR is just an attempt for pre-empting roles of governments as caretakers of major multinational organizations (Bénabou & Tirole, 2010).

        Corporate social responsibility is created for helping organizations in achieving their missions and providing a guide to what the organization really means. It also makes the company stick to its principles while dealing with customers. A form of applied ethics is the development business ethics and it evaluates moral and ethical issues that can occur in a business. And it is accepted widely that corporate social responsibility adheres to their principles but without formal legislation act. Although guidelines as Principles for Responsible Investment have been developed by the UN for major corporations (Du, et al., 2010).

Volkswagen of Corporate Social Responsibility (CSR) in Businesses Today

        The case of Volkswagen represents a failure when it comes to corporate social responsibility. The organization deliberately struggled to create a design for circumventing the emissions control. The objective of the organization behind it was to achieve an unfair advantage over all of its competitors in the market. It can be said that the company wanted to be the top automobile manufacturer in the whole world. The organization wanted to deceive others by producing eco-friendly cars but in reality, it was harming the planet. This rejection of all ethical principles in terms of engineering has caused not only the CEO but also head of Audi and engine chief of Porsche to resign. It also makes one thing clear that the CSR department of the organization should be aware of what the organization is trying to do.

        The command chain which was responsible for leading to the development of software could put engines into test modes and then change it back to dirt modes. All the testing that was carried out has been documented and it was exclaimed by the officials that all authorities responsible for it can be easily identified throughout the organization. For an organization to achieve success, it is actually important for it to be transparent about its functions. However, the same approach was not adopted by Volkswagen. The engine was modified by the organization and every measure was taken by Volkswagen for hiding the fact that its engines proved to be more harmful and contaminating than expected. It poses various questions including; How can the CSR head completely deny that he never got to know anything? It only indicates that either the person was not properly carrying out their job or is siding with the organization. Regardless, it suggests that corporate social responsibility was only considered a marketing exercise by Volkswagen.

        It is important to consider that this situation can be applied to many other organizations. The organization will simply appoint another CEO and will change its practices for a little while before adopting the same strategy again. CSR is utilized by organizations as a marketing agenda for making sure that more customers are being attracted and no one is suspecting them. In the name of environment-friendly, it is not known yet how many products are purchased by customers which harm the environment. In fact, these products contribute just damaging the environment. It was decided by Volkswagen that it is did not matter if its cars negatively influenced the environment by emitting almost forty times the valid limit of NO. Nothing mattered more to the organization than becoming the best car manufacturer in the whole world. It actually parallels the industry of tobacco. Therefore, it can be said that the organization faced dire consequences in terms of social influence because it did not care about the CSR (Pohl & Tolhurst, 2010).

Apple Corporate Social Responsibility (CSR) in Businesses Today

        Apple Inc. is an internationally recognized smartphone manufacturing company. It has gotten most of its fame through the production of reliable products but at present, more attention is being paid to how it complies with the principles of CSR. It has been determined that not only Apple is producing products in an eco-friendly manner but it also makes sure that all of its workers and shareholders are satisfied with its practices. For instance, ex-employees of the organization have been confronted and they exclaim that Apple pays a special attention to its employee satisfaction. The organization ensures that every decision it takes has only a positive influence on its employees so they don’t have to force themselves to go through a change. In fact, if such a decision is implemented then it is also made sure that workers are given enough time to adjust to this change before meeting the usual standards.

        The reason why Apple focuses so much on employee satisfaction is because of its significance and positive influence on other contributors of success. For instance, in many other studies, employee satisfaction has been identified to positively influence employee engagement, positive environment, and work effectiveness. Therefore, by maintaining the happiness of workers, the organization ensures that all these factors are influenced positively as well and it is ultimately able to achieve success in terms of both revenue and mission. Meanwhile, the organization also ensures that its practices are transparent and known publicly. Overall, it can be said that by adhering to the guidelines of corporate social responsibility (Khan, et al., 2015).

Influence of Corporate Social Responsibility (CSR) in Businesses Today

Following are the important organizational aspects of Apple Inc. influenced by CSR:

Stability of Corporate Social Responsibility (CSR) in Businesses Today

        Initially, an owner of a small business might not view the stability of an organization as a significant objective. He or she may also strive for growth and create an evolving company that does well in the market. However, Apple as an international company has a completely different perspective. In its point of view, maintaining organizational stability is quite a significant objective and it can help in achieving increased profits and revenue growth. And the company does it well by complying with the rules of corporate social responsibility.

Customer Retention and Satisfaction:

        It is quite sensible that customers might decide not to be involved with an organization that has a socially bad reputation and is considered irresponsible in the society. Meanwhile, businesses that indicate a commitment to the environment and community can successfully attract consumers who seem to share these values. Customers like to be cared for and Apple does very well in that area which helps it in maintaining its consumer base. Customer satisfaction increases as the company continues to do well and perform the services. When consumers come to think that the company is not only caring for them but also their environment, they will stick to it and this aspect is enjoyed by Apple. These satisfied consumers are more likely to continue doing business with the organization. Hence, a loyal and stable base of consumers is an important asset.

Access to Funding of Corporate Social Responsibility (CSR) in Businesses Today

            Often, capital required for launching an organization and capital infusions might be required for plans of fund expansion. Capital can be seen as a mechanism for ensuring stability of the organization in the sense that it is capable of helping Apple making a consistent process to achieve its objectives. Investors actually look at the social and ethical standards which are exhibited by the organization when choosing whether to offer capital to the organization or not. It is also common to come across investors who are exclusively focused upon finding organizations with good practices of CSR (Cheng, et al., 2014).

Employee Retention of Corporate Social Responsibility (CSR) in Businesses Today

        A stable workforce has to be created by organizations whether they are small or large. It is created by making sure that top talents are retained effectively and the organization must also ensure that competitors are not attracting the top talents. Apple Inc. seems to do very well in making sure that its employees are not attracted to other organizations or competitors. The firm is able to do it by providing workers with several facilities. However, it is not easy for workers to find a spot in the company because it has very strict merits and they are very difficult to meet (Crowther & Seifi, 2018).

Fostering a positive and nurturing environment

            Organizations that seem to have ethical lapses like not focusing on environmental regulations or all the standards for how workers have to be treated, suffer a lethal damage to their social image when these issues are made public. The reputation of an organization is capable of affecting its relationship with its stakeholders. In addition, for repairing its image, an organization has to not only spend a lot of time being transparent but also ensuring that the public knows its efforts. Apple is quite powerful in this aspect because it doesn’t let its image be damaged by complying with CSR.

Stable Cash Flow of Corporate Social Responsibility (CSR) in Businesses Today

        Penalties and fines which are caused by the lack of compliance with the CSR guidelines can not only negatively influence the organization but also its image in the society. Cash flow is the lifeline of an organization which allows it to meet its different obligations like payroll and funding the development program of business and marketing. Maintaining a stable cash flow can be quite beneficial for an organization and when it comes to being fined, Apple is extra-conscious.

Why should your business care about CSR?

Following are the advantages of complying with the guidelines of customer social responsibility:

Improves Public Image

            Organizations that seem to practice their commitment to CSR are perceived as more generous than organizations whose CSR compliance is not existent. The public image of a company is significantly influenced by its initiatives of CSR and how much customers are aware of these initiatives. It is important to know customer feel good purchasing from those who are helping the community. That is why, an organization’s public image should be cleaned up. an organization can improve its public image by supporting different non-profit organization and acting on other kind of donations. However, it is also important to know that these efforts should be made public for gaining recognition or otherwise, the results will be delayed.

2. Increases Media Coverage of Corporate Social Responsibility (CSR) in Businesses Today

        Actually, it does not matter just how much your organization is doing for saving the environment if there is no one to know it. Therefore, you should ensure that your stories are being covered by the local media. It can be said that media coverage increase with benefits. Meanwhile, if an organization chooses to participate in the activities or production that can negative influence others, media will be quick in picking it up. Media visibility is significant only for an organization if it is positive.

3. Increases Employee Engagement of Corporate Social Responsibility (CSR) in Businesses Today

        Workers seem to like working for an organization that has a good image and is present on media for good reasons. It is important to know that happy employees equal better and efficient outcome. Almost sixty percent of the workers of the organization who are proud of their organization’s CSR are engaged with their work. When an organization shows that it is dedicated to improve the community through CSR initiatives, they are more likely to attract and retain talented employees.

        If an organization focuses on its community, then employees are seemingly more likely to interview and apply for the positions which are available. And once hired, workers who are engaged with their work can be more productive. They will also be more creative.

4. Attracts and Retains Investors of Corporate Social Responsibility (CSR) in Businesses Today

        Actually, investors who are investing their money into organization wish to know that their money is properly utilized. It doesn’t only mean that an organization has effective business budgets and plans, but it also means that they strongly care for their CSR. When organizations are donating money to a nonprofit company and encouraging its workers to volunteer some of their time, they are demonstrating that they are not just concerned with profits. Instead of it, they indicate that they have a specific interest in international and local community. In fact, investors are more likely to continue supporting organizations which seem to demonstrate a strong commitment to not only consumers but also workers.

5. Positive Workplace Environment of Corporate Social Responsibility (CSR) in Businesses Today

        When a company is exhibiting a generous behavior, it is actually more likely to offer workers with a beneficial and positive workplace. It results in workers feeling productive and engaged when they working daily. Instilling a firm culture of CSR within employees will help a lot in creating a productive and positive environment where workers thrive to achieve greatness. All organizations that seem to care about others are capable of creating a positive environment.

6. Increase in Creativity of Corporate Social Responsibility (CSR) in Businesses Today

        Workers who recognize their employer will be committed to improve the global and local communities feel a powerful connection to the organization. Because of this strong connection that workers share with the organization, they are inclined to be more creative and productive. Workers have determined creativity as a significant quality of leadership that a worker can possess. Creative workers actually enjoy working for organization which can stand behind. By integrating a generous CSR program, your company can make workers more creative.

References of Corporate Social Responsibility (CSR) in Businesses Today

Aguinis, H. & Glavas, A., 2012. What we know and don’t know about corporate social responsibility: A review and research agenda. Journal of management , 38(4), pp. 932-968.

Bénabou, R. & Tirole, J., 2010. Individual and corporate social responsibility. Economica, 77(305), pp. 1-19.

Carroll, A. B. & Shabana, K. M., 2010. The business case for corporate social responsibility: A review of concepts, research and practice. International journal of management reviews , 12(1), pp. 85-105.

Cheng, B., Ioannou, I. & Serafeim, G., 2014. Corporate social responsibility and access to finance. Strategic management journal , 35(1), pp. 1-23.

Crowther, D. & Seifi, S., 2018. Redefining Corporate Social Responsibility. s.l.:Emerald Group Publishing.

Du, S., Bhattacharya, C. B. & Sen, S., 2010. Maximizing business returns to corporate social responsibility (CSR): The role of CSR communication. International journal of management reviews , 12(1), pp. 8-19.

Khan, U. A., Alam, M. N. & Alam, S., 2015. A critical analysis of internal and external environment of Apple Inc. International Journal of Economics, Commerce and Management , 3(6), pp. 955-961.

Pohl, M. & Tolhurst, N., 2010. Responsible business: how to manage a CSR strategy successfully. s.l.:John Wiley & Sons.