Corporate Social Responsibility

            The broad concept of corporate social responsibility considers the actions and strategies of industries and companies. The corporate social responsibility programs consider the business benefits and volunteer efforts that boost the brands. The corporate social responsibility of a brand or company defines efforts made by nonprofit companies for implementation of environmentally friendly policies of workplace (Eccles, Newquist and Schatz). Corporate social responsibilities are important for employees, nonprofits, and companies. The significant impact of corporate social responsibility is on reduction of carbon footprints, embracing process for the fair trade, and improvement of labor policies. These efforts engage the volunteer work of community and give charitable efforts (Bengtsson, Alfredsson and Cohen).

            The main aim of present work is identified significance of product lifecycle in the companies and how it can be used in promotion of corporate social responsibilities. The connections identified in the research are related to consumption, source, production, and disposal. Besides these factors’ different strategies about implementation of firm reputation and production process are also considered in the analysis.

What is the significance of the product lifecycle in lifecycle pricing for companies that promote CSR?

            It is important for companies to know that how they would measure the activity of their corporate social responsibility. This is one of the important questions that companies have to answer in a proper manner so that they can drive their CSR activities in right direction. But how companies can do that? It is certainly not an easy process to handle as CSR is a dynamic activity in so many ways. It is important for a company to develop a product lifecycle plan with required measures so that proper pricing is selected, which also goes along well with the CSR activities. If they would not develop an appropriate strategy, then things may not turn as they want them to be. It is vital for companies to come up with concrete plan on lifecycle pricing of a product. This concept means that when product lifecycle pricing would be done, it would consider few things, which can help to stimulate CSR. In this concept, the product will not only be priced with its all production costs, but how its other activities would cost like raw materials’ replenishment and disposal of waste associated with the product. But there is an issue with this strategy that if products lifecycle pricing would be done like this, then cheap products would become expensive and many people may not be able to afford them. It is certainly good for corporate social responsibility, as it would be easy for companies to manage their costs (Misra)

            It is also vital to know that how product lifecycle would make an impact on companies with regards to their lifecycle pricing, which would be suitable for a company that promote and practice corporate social responsibility. The product lifecycle goes through various stages from its introduction in the market to its discontinuation from the market. It is a fact that when products go through their development phase, then pricing of the product will always be on the lower side because there might be competitors with similar products. Moreover, the product has not gained any reputation from the market so prices cannot be set high in these initial stages of product lifecycle. If product has got good reputation in the market and it enters into the growth stage, then it is obvious that demand for that product would be high and it could increase more. The companies can increase the prices of products at this stage, but they cannot increase too much, because it is also a stage, where competitors are throwing constant threats with their prices. In maturity stage of product lifecycle, the product cannot be priced like the growth stage, and companies will have to move forward with competitive pricing to keep competing. The last stage is the decline stage, where product’s demand is at its lowest, so companies cannot tag high prices at this stage. Looking at all of these stages, it looks that CSR companies will not have too much space while setting price on the basis of product lifecycle pricing, because other than growth stage, they cannot increase product’s prices (Blakely-Gray)

What are the connections among source, production, consumption, and disposal?

            The connection among different stages of a product is an obvious one, and one has to understand that how these steps are connected with each other so that proper strategy is derived to keep things on right track. This connection between different steps like source, production, consumption as well as disposal is a crucial one for a company, which believes in corporate social responsibility. The company promoting CSR will analyze each and every step of their product’s production because it will determine their willingness for doing something for the society. For instance, if a product is causing too much pollution and measures are not taken to cope with that, then such behavior may not be tolerated by the society, because they certainly will face effects of this pollution. So, a company has to ensure that they select raw material with sustainable materials, which would come under source step.

        The source material to manufacture a product should follow the basics of CSR, and it should not violate those guidelines because otherwise surrounding society will have to face repercussions. For this purpose, companies can promote to use natural resources if possible, rather using any dangerous chemicals or materials. They need to consider those materials, which produce less air, soil and water pollution. Moreover, companies will have to understand that if they want to be more CSR friendly, then they will have to believe in sustainable development of products as well, which means that they should do more with less. The source material will be used in production, and if this material is not sustainable and environment friendly, then it will continue to produce pollution in the consumption stage, when consumers will consume such products. The materials with health and environment dangers will always continue to produce pollution when they will be consumed in the shape of product. And things will not stop here, because when such product with dangerous and polluted materials will be disposed or dumped, it will continue with their negative effects. It shows that how a source will produce a product, that later will be consumed and disposed, and all of these steps are clearly connected with each other. If first step is taken right, then all other steps will go n right direction, and if start is bad, then it will end with the worst (Bengtsson, Alfredsson and Cohen)

What are the implications for a firm’s reputation when there is a dichotomy between the final consumer product and the inputs to its production?

            There is no doubt that reputation of a company is one of the most important things for their long term success and position in the market. If a company has a good reputation of being socially responsible and they produce great products keeping CSR in view, then such company will be gaining more business and growth as compared to those companies, which do not promote corporate social responsibility. But if a company with good reputation developed good products, but when their production process is revealed that it comes with so many hazards and pollution for the surrounding society, then reputation of the company will be at stake. The company will no more claim to be a socially responsible company, because producing sustainable products mean that all stages of product’s production follow the ethical guidelines provided by CSR concept. The company will have to face negative feedback regarding their products, which would damage their reputation in so many ways. So, reputation is very crucial for socially responsible company, because it takes years to get a better reputation, but it can be ruined in days (Eccles, Newquist and Schatz). The key findings from annual global CSR study published by Cone Communications are showing that consumers’ interest is increasing for those companies, which are becoming more socially responsible. The study found that consumers believed that they will punish or reward companies on the basis of their CSR activities. Moreover, the study also found that consumers are also demanding more socially responsible products, which are good for the environment. The study also revealed that customers will be more loyal to companies following CSR concept (Mainwaring)

            There can be examples of companies, which don’t really pay any attention to product lifecycle, because they don’t have to do that as their brands are strong enough to continue with their growth and development. One of such examples is Coca-Cola Company; they don’t have to follow the concept of product lifecycle, because their brand reputation is so strong, and they are still winning the competition at so many fronts. Their product is like living forever, because no one has challenged them in any strong manner. The other example of such company is Western Union; they also don’t have to believe in product lifecycle, because their brand is also strong, and going well for so many years in the business. But it does not mean that they could not be socially responsible if they don’t follow any product lifecycle. They still can be socially responsible and follow good practices of CSR as they are strong brands, and they can adopt strategies to promote corporate social responsibility (Nielsen)

Describe five steps to take as a leader in a global company to ensure that it is engaging in ethical and sustainable practices.

            It is not an easy thing to accomplish for any leader working in a global company to engage and promote ethical as well as sustainable practices because it is difficult thing to keep everyone on the same page. But they can follow at least five steps to promote sustainable and ethical practices in their company. First step is to develop a proper code, which includes all sustainable and ethical guidelines. This code should include a complete code of ethics to follow, and everyone must adhere to this code. The second step is to come up with trickledown effect, which means that developed code should be practiced from the top. The top and senior management and all leaders should adhere to the code, and set an example for their subordinates. It means that no one is exempted from the set code of ethics and sustainable practices. The third step is to hire people, who have favorable views and values to become socially responsible. It means that when people are interviewed, they must be analyzed on the basis of their view on sustainable and CSR. The fourth step is to provide proper training to the employees that how they can follow developed code, and what they can do to report or provide feedback, if they observe anything wrong going against the code. The fifth step in this regard is to examine developed code of ethics and sustainability, and measure its effectiveness time to time so that it is known whether it is serving its objectives, or it needs any considerable changes (Hedborg).

Conclusion of Corporate Social Responsibility

        The present report identified relation between different factors and their connection with corporate social responsibilities. The connections identified in the research were between the production, source, consumption, and disposal. Different source materials are used in the research about production process and pollution facts. The pollution is inducing negative impact on environment. The negative feedback about the production process is damaging the reputation of organizations. The company is socially responsible for their production, pollution, and reputation of the company. The research identified five factors considered in the global company that engage sustainable and ethical practices.  

References of Corporate Social Responsibility

Bengtsson, Magnus, et al. "Transforming systems of consumption and production for achieving the sustainable development goals: moving beyond efficiency." Sustainability Science 13.6 (2018): 1533–1547.

Blakely-Gray, Rachel. What Is the Product Life Cycle, and How Does it Impact Pricing Strategies? 2017. 14 August 2019. <https://www.patriotsoftware.com/accounting/training/blog/what-is-product-life-cycle-management/>.

Eccles, Robert G., Scott C. Newquist and Roland Schatz. Reputation and Its Risks. 2007. 14 August 2019. <https://hbr.org/2007/02/reputation-and-its-risks>.

Hedborg, Camilla. Five steps to improve ethical performance. 2014. 14 August 2019. <https://www.cgma.org/blogs/five-steps-to-improve-ethical-performance.html>.

Mainwaring, Simon. Global CSR Study: Consumers Making CSR Personal. 2015. 14 August 2019. <https://www.linkedin.com/pulse/2015-cone-communicationsebiquity-global-csr-study-simon-mainwaring>.

Misra, Shekhar. "Price and Advertising Effort Over the Product Life Cycle: The B.C.G. and Dorfman-Steiner Approaches." Proceedings of the 1987 Academy of Marketing Science (AMS) Annual Conference. 1987. 288-290.

Nielsen, Lisa. Products That Do Not Obey the Product Life Cycle. 2019. 14 August 2019. <https://smallbusiness.chron.com/products-not-obey-product-life-cycle-5061.html>.