Corporate Social Responsibility and Organizational

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Corporate Social Responsibilityand Organizational Culture

APR 24

Posted by Ahmed Ameez

In the modern world, corporate firms highly emphasize on Corporate SocialResponsibility (CSR) apart from the economic goals and profit maximization. Thechange in stakeholders and communitys expectation from the corporate businessdrifted businesses towards CSR. CSR is also based on the values of the company aswell. On the other hand Organizational Culture is a significant determinant of

employee behaviour, teamwork, the honesty and sincerity of the employees and ingeneral the overall success of business. Organizations should focus onstrengthening the organizational culture. Focusing on building and sustaining anorganizational culture is one way of showing that people are the organizationsmost valuable asset.

Corporate Social Responsibility in simple terms refers tocommitment by business for social welfare of staff, stakeholders and thecommunity. The extent companies involve in CSR depends on the companys viewon CSR, the size of the company etc. and different companies define CSR indifferent ways. According to World Bank Corporate social responsibility is thecommitment of business to contribute to sustainable economic development by

working with employees, their families, the local community and society atlarge to improve their lives in ways that are good for business and fordevelopment. There are two opposing views of social Responsibility. Somecompanies believe that their social responsibility is only maximizing profit which isreferred as the classical view. On the other hand the socio economic view is that
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companies have to go beyond making profits and involve in improving socialwelfare.Basically, organizational culture is the personality of the organization.Organizational Culture is a system of shared meaning and beliefs held by

organizational members that determines, in large degree, how they act. Anorganizations culture is imperative for the success of the organization andcontrols the way employees behave amongst themselves as well as with people

outside the organization. The nature of corporateculture that exists in a company is going to decide the degree to which the desiredresults from the employees are obtained. There are several dimensions of Organizational Culture such as team orientation, people orientation, attention todetail, innovation and so on. Whether an organizations culture is strong, weak, orsomewhere in between depends on factors such as the size of the organization,how long it has been around, how much turnover there has been amongemployees, and the intensity with which the culture was originated. Theorganizational Culture is transmitted to employees in a number of ways. The most

significant are stories, rituals, symbols, and language.

Corporate and organisational culture

It is widely recognised that different organisations have distinctive

cultures. A commonly used definition of organisational culture is 'the

way we see and do things around here'. Through tradition, history andstructure, organisations build up their own culture. Culture therefore

gives an organisation a sense of identity - 'who we are', 'what we stand

for', 'what we do'. It determines, through the organisation's legends,

rituals, beliefs, meanings, values, norms and language, the way in
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which 'things are done around here'.

An organisations' culture encapsulates what it has been good at and

what has worked in the past. These values can often be accepted

without question by long-serving members of an organisation.One of the first things a new employee learns is some of the

organisation's legends - perhaps how the founder worked long hours

and despised formal educational and training qualifications. Legends

can stay with an organisation and become part of the established way of

doing things. Perhaps the founder's views about the importance of

education and training will stay current; in the course of time there may

be a 'culture shift' as new managers move into the organisation andchange the old ways. However, a number of legends continue to be

important determinants of 'the way we do things around here'.

Culture

Over time the organisation will develop 'norms' ie. established (normal)

expected behaviour patterns within the organisation.

A norm is an established behaviour pattern that is part of a culture. A number of organisational culture types have been identified by

researchers.

1. A power culture is one based on the dominance of one or a small

number of individuals within an organisation. They make the key

decisions for the organisation. This sort of power culture may exist in a

small business or part of a larger business.

2. A role culture exists in large hierarchical organisations in whichindividuals have clear roles (jobs) to perform which are closely

specified. Individuals tend to work closely to their job description, and

tend to follow the rules rather than to operate in a creative way.

3. In contrast task cultures exist when teams are formed to complete


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particular tasks. A distinct team culture develops, and because the team

is empowered to make decisions, task cultures can be creative.

4. A person culture is the most individualistic form of culture and exists

when individuals are fully allowed to express themselves and makedecisions for themselves. A person culture can only exist in a very loose

form of organisation eg. an overseas sales person working on their own

for a company, allowed to make their own decisions.

Culture change involves moving an organisation on from one form of

culture to another, usually through a culture change programme.

Introduction

The concept of Organisational culture has gained positive acknowledgment from

many scholars, researchers and management gurus. It has been observed that

effective companies often have very strong organisational culture and, more and

more people have started believing in the concept of a sound culture. The purpose

of this report is to analyse if indeed the success of a company depends on its culture

and how is a winning culture established.

What does Organisational Culture Mean?

The term culture is so vast that it is simply not possible to cover the concept in a

single definition. The one stated below is the simplest definition

Culture can be thought of as the foundation of the social order that we live in and of

the rules we abide by. Source: (Schein, Organizational Culture and Leadership,

2010) In other words, people who belong to a particular culture have same beliefs


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and assumptions about what is right, wrong and normal. Culture has four dominant

aspects values, customs, symbols and language.

Organisational culture, as the name suggests is the culture prevalent within the

organisation; there are some values and norms which all employees understand and

accept. It goes without saying that, employee behaviour and decisions are hugely

guided by the culture that prevails in the organisation. Employees, by default, belong

to the culture they were born in; however, when they enter the organisation they

have to set aside their beliefs and adopt the values of their workplace. Adapting to

the culture of the workplace is not only important to sustain the job but also so that

the company represents one common notion.

Further in this report, how employees learn the organisational culture is discussed

along with its importance. Towards the end, the report focuses on how a particular

culture is maintained via effective leadership.

How Employees Adapt the Culture?

When an employee joins a new organisation, he is subjected to a new culture from

the day one. The organisational culture is reflected in the way employees talk,

behave, and conduct themselves. A new employee experiences bits and pieces of

the culture, everywhere in the organisation and therefore, it is not tough for him to

get accustomed and modify himself according to the new culture.

The diagram stated above, depicts how the organisational culture is continually

reinforced in the employees via stories, rituals, material symbols and language. This

can be best explained with the help of an example; the organisational culture of Wal-

Mart revolves around how to get customers the best prices and efficiency is of

paramount importance, all these values are ingrained in the employees of Wal-Mart.

Samuel Walton and him team has created an organisational culture which supports

the organisational goal; everything in the company is value for money. The


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management believes that any extra expenditure will have to be borne by the

customers in the end and this way Wal-Mart cannot provide the lowest price

possible. Therefore, when visitors come to Wal-Mart they pay for their own

beverages; the corporate office has inexpensive workstations in which employees

work with inexpensive equipments to make the system more efficient. (Navarro,

2005)

Wal-Mart wouldnt have been Wal-Mart had the organisational culture promoted

extravagant spending. This explains the importance of having a complementing

organisational culture.

Types of Organisational Culture

Each organisation has its own unique culture and this is what differentiates one

company from another. It is next to impossible to state every culture present in the

world; however, they can be loosely bifurcated into the following categories

The Clan culture

As the name suggests, the whole organisation is like a clan or a family; the

employees are encouraged to share what they feel, an open door policy is

maintained throughout the organisation. The management gives a lot of importance

to team work, consensus and employee development. (Hellriegel & Slocum, 2007)

The Hierarchy culture

Completely opposite to the clan culture, rules and procedures govern the working inthe hierarchy culture. Employees are expected to follow the policies devised by the

top management; the emphasis is on smooth running of the organisation.

The Adhocracy culture
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One word that describes the adhocracy culture is Creativity. There is a lot of

emphasis on innovation, free thinking and experimentation. However, it is important

to channel this creativity in the right direction.

The Market culture

Winning is what defines the market culture. Employees are very result oriented and

competitive; leaders, on the other hand are very demanding and productive. The

focus is always on getting things done effectively and efficiently. Not many people

are can sustain under such circumstances; however, for some it is exciting and

challenging.

Does Organisational Culture Really Matter?To answer this question, it is important to understand how the culture of an

organisation effect its working. This can best be understood with the help of an

example, consider two managers, both of them face a situation where they have to

take instant decisions. Manager A works in a bureaucratic firm with the hierarchy

culture and manager B works in the clan culture.

The situation demands an instant decision; however manager A is not authorised,

therefore he will first contact his superiors which will slow down the procedure. On

the contrary, manager B is authorised to take the decision since the culture does not

believes in empowering the employees. The bureaucratic organisation stands to lose

because the decision was not taken when it was required; there were unnecessary

delays because of power centralism.

This is how organisational culture effects the functioning of the company and

therefore it is important to choose a culture which meets the requirement of the

company/industry. Some of the other managerial implications are (Miltenburg, 2005)


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a) Safety vs. Risk: The culture of the company specifies whether risky decisions

should be taken or not and whether managers should give importance to high risk

high return ventures or low risk low return ventures.

b) Individual vs. Group: The founder has to decide whether he wants his

employees to be team players or he wants them to work collectively without

competition.

c) Informal vs. Formal Procedures: As stated in the example some cultures are

highly bureaucratic and some follow an open door policy; both have their own

advantages and disadvantages.

d) Centralisation vs. Decentralisation: Some cultures want the power to remain in

the hands of a limited few wherein in other companies delegation of power and

authority is thought to be the better choice.

Having a strong and positive organisational atmosphere has many advantages; for

instance, companies which have an employee friendly approach is able to attract

talent and retain it. A positive culture is also capable of motivating the employees

and creating synergy. The reason behind taking so many measures to keep the

employees satisfied is because only happy employees can give happy customers.

(Nelson & Quick, 2008)

There is indeed a positive correlation between the culture of the company and its

success. Strong cultures are capable of instilling a feeling of loyalty and

commitment amongst the employees. (Ferrell, Fraedrich, & Ferrel, 2009) Culture

also serves as a control mechanism, if the culture of the company is strictly against

any dubious activities then employees are bound to think twice before committing

something unethical.

It is imprudent to assume that the only reason to maintain a positive work culture is

to satisfy the employees. One of the other major advantages is that the company

gains good reputation in the market. Although there are no fiscal benefits of having a

strong goodwill but the non-monetary benefits are innumerable; the company earns


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respect in the eyes of the customer which soon turns into loyalty and thereby

increased market share.

The Role of Leadership in Determining andManaging Organisational Culture

The creation of organisational culture majorly depends on the founder, his ideologies

and values are clearly reflected in the culture he tries to actualise in his company.

There are three ways to create and sustain organisational culture (Schein, 2004)

Only those employees are hired who match the values of the company

It is believed that new employees can be moulded according to the work culture;

however, it is still necessary to hire only those employees which exhibit similar

values and are willing to change. Before hiring, it is necessary check both their ability

to perform and their ability to accept changes.

Indoctrinating and inculcating the culture in the employees via socialising

Socialisation is the technique used by the human resource department of the

company to implant the culture in new employees. It is necessary to impart the

culture right from the beginning so that new employees do not disturb the existing

atmosphere. The process of socialisation has three stages 1) Pre arrival: employees

form an opinion about the company they are going to work for 2) Encounter: they

notice the difference between their perception and the reality 3) Metamorphosis: new

employees try to imbibe values which will make them one of the clan.

The leaders should act as role models and set up examples for subordinates to

follow


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The best way to create a culture is by setting examples for employees to follow. It

goes without saying that every employee looks upon his superior for guidance and

direction; if the actions and decisions of the top management are in sync with the

organisational culture, it reinforces the values in the minds of the employees.

(Keyton, 2011)

Let us say company A follows an open door policy and employees are encouraged

to put forward their views; however, some of the superiors do not want to consider

juniors opinions. Such a situation will create confusion in the minds of the

employees and in the end they will end up disrespecting the culture set by the

founder of the company. This example proves how important it is for the leaders of

the company to be a role model for the employees at all times.

Conclusion

Creating a strong organisational culture might seem frivolous to some, but those who

are prudent understand its importance. Setting up a culture which matches the

ultimate objective of the company is the key to success. Creating a culture is not aherculean task; it just needs little efforts from the founder and leaders of the

company; however, these miniscule efforts pay back in the most generous ways.

Essay on The Organizational Culture

An organization's culture varies as widely as the nature of work itself. Oftentimes a

unique different mix of values and norms govern the cultural environment of an

organization. In today's fast changing business environment, the cultural make-up of an

organizations plays a critical role in the success of the firm to achieve it's strategic

objectives. In this paper I will explore the idea of organizational culture and discuss


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factors associated with understanding the reality of an organization's culture, with

examples presented to illustrate my discussion points.

*************************************************

Culture is not an easily defined concept, but generally it is the values, beliefs, and norms

expressed in work practices and behavior. An organization's culture is not necessarily an

articulated list of values found in a carefully worded statement or available as an

appendix in an annual report. Rather, culture is created by the organization itself. How

employees treat and interact with one another and the values of the employees and the

organization, such as work ethic, manifest an organization's culture. Some cultures

encourage innovation and risk taking, while others punish those who challengeestablished norms and practices. Mavericks are welcomed in certain occupations, but

not especially in the military culture, for example. Is decision making shared or

autocratically dictated? How closely employee well being is maintained also contributes

greatly to establishing the work cultural. These are all factors creating to the

development of a cultural environment at the

Social responsibility is an idea that has been of concern to mankind for manyyears. Over the last two decades, however, it has become of increasing concernto the business world. This has resulted in growing interaction betweengovernments, businesses and society as a whole. In the past, businesses

primarily concerned themselves with the economic results of their decisions.Today, however, businesses must also reflect on the legal, ethical, moral andsocial consequences of their decisions (Anderson 15). This paper will discussthe concept of corporate social responsibility . It will give the definition of the

phrase, and identify some of the global factors that necessitate corporate social

responsibility. It will discuss the importance of corporations setting upcorporate social responsibility projects, and the impact these have on society.Social corporate responsibility and the maintenance of high ethical standards isnot an option but an obligation for all business.

Corporate social responsibility is no longer defined by how much money acompany contributes to charity, but by its overall involvement in activities that


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improve the quality of peoples lives. Corporate Responsibility has come up asa significant subject matter in the international business community and is

progressively becoming a mainstream activity. There is mounting recognitionof the momentous effect the activities of the private sector have on theworkforce, clientele, the society, the environment, competitors, businessassociates, investors, shareholders, governments and others groups . It is also

becoming progressively clear that organizations can contribute to their individual wealth and to overall community wealth by taking into account theeffect they have on the entire globe when making decisions (Anderson 5).

Ethics of multi-corporations involves actions that are morally upright. It iscommon knowledge that most of the activities corporations are engaged in maynot meet the required ethical standards. This is because, many businesses tendto focus on profit making rather than any other thing. Business ethics is anupcoming issue mainly due to the sheer number of persons involved. Theactions of a few persons may seem safe on a small scale but on a large scale,such actions could be devastating. An example of such situations that may beconsidered unethical is the firing or employees to keep the profit margin of acompany high. In the wake of the financial breakdown, many people lost their

jobs. Most of the persons who lost their jobs included civil servants who aremiddle class persons. In order to ensure that the corporations save some money,most of these workers were laid off. Such an action is considered unethical.This is because; even though the companies are somehow at a loss, the firing of all those employees means that so many people are going to suffer. The multi-

corporations could definitely live with the loss incurred but would rather avoidthat by firing a number of their workers.

Businesses are an essential part of the society within which they operate.Excellent executives are aware that their long-term prosperity is founded onsustained good associations with a broad range of persons, groups andorganizations. Intelligent organizations know that businesses can never be

prosperous if they operate within societies that are unsuccessful. This isregardless of whether the society is failing due to social, governance or environmental challenges. Furthermore, the common public has lofty

expectations of the private sector with regard to responsible and ethical behavior. Consumers expect goods and services to mirror socially andenvironmentally accountable business conduct at reasonable prices.Shareholders also are seeking improved financial performance that interlinkssocial and environmental elements, as regards the opportunities they present(Banerjee 13).


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There are several factors which explain the growing interest in corporate socialresponsibility. The first factor is the new concerns and expectations of citizens,consumers, public authorities globalisation and industrial change. The secondfactor is the increasing influence of social criteria on the investment decisionsof individuals and institutions, as investors or consumers. The third factor is thegrowing concern about environmental degradation. This is a particularlyimportant concern given the fact that environmental conservation has becomean increasingly significant for everyone in society today. With multi-corporations raking in millions, it is only justified that they give back to thecommunity. The wanton disregard of the environment by a few companieswhen it comes to handling of industrial waste, the use of recyclable paper or sheer indifference when it comes to environmental protection is shocking. Asaforementioned, corporate social responsibility involves activities that give

back to the community, or ensure fairness in the running of activities (Crowther and Rayman-Bacchu 69).

The protection of the environment has become the center stage of manyhumanitarian organizations. Most of these humanitarian organizations arguethat the protection of the environment should be the key concern of anycorporation. This is because; the environment is the only natural resource thatis invaluable to the human race. The issue of handling industrial waste by manycorporations has always been at the forefront of many environmentalorganizations. This is because; corporations are guilty on more than one accordof irresponsibly handling their waste. Evidence such as the great pacific

garbage patch exists to show how many corporations are not handling thedumping of waste seriously. The great pacific garbage patch is a myriad of human waste that has found its way into the ocean after being improperlydumped. The great pacific garbage patch leads to problems such as loss of aquatic life and the contamination of the water not mentioning the introductionof many pollutants into the water (Werther and Chandler 55).

Corporate social responsibility makes it clear that it is certainly unethical for these corporations to be making profits at the expense of the environment andother aspects of the human life. Corporate social responsibility makes it clear

that corporations should therefore find better ways to handle their wastedisposal. Even though it is currently not clear on what is the best way to handlesome waste such as hot water, responsibility means that before waste isdisposed, it should pass some tests. The tests could ensure that the waste is safefor disposal and would not in any way harm human beings and other life.Corporate social responsibility is therefore viewed as a control mechanism to


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ensure that multi-corporations are responsible for their actions (Werther andChandler 70).

The global financial meltdown uncovered many social norms previouslyunimagined. The number of people who lost their jobs due to the financialsituation is appalling. Interestingly, this does not mean that multi-nationalcorporations are necessarily suffering. Most of the established companies with

branches all over the world took the excuse of the financial breakdown to benefit. All of a sudden, it was okay to lay off people on the pretext of financialgloom. This means that a few people were benefiting from the woes of athousand more. The issue of corporate social responsibility presents itself inthis situation in that, the multi-corporations are run by a board of governors.

The board of governors is usually composed of a few individuals that call allthe shots. It is common knowledge that these corporations employ a hugenumber of persons in many sectors of the economy. When the profits of thesegigantic companies fail to reach a certain goal, the running costs of the businesshave to be checked. This is why, the few persons at the top, not wanting to lose,resort to firing some people. This is done so as to maintain the profits at acertain level. The problem is that when all of the multinational companiesresort to firing a few employees, the net effect is that, a large number of

persons end up losing their jobs.

Corporate social responsibility ensures that corporations the world over areengaged in other activities that give back to the community (Crowther andRayman-Bacchu 172). Many activities that are considered helpful include;organizing activities that seek to involve the community in such events as fundraising for the needy, events that seek to help out the disadvantage in societyand other similar activities. In the financial and corporate world, corporatesocial responsibility a given with a positive impact on performance. There are,however, several factors that show the need for corporate social responsibility.The first factor is population. The expanding population in developing regionswill create larger markets dominated by younger individuals with questionableaccess to the developed worlds standard of living. Statistics show that more

than eighty five percent of the worlds population will live in developingcountries by 2025 (Crowther and Rayman-Bacchu 165). This presents achallenge to companies seeking to involve themselves in corporate socialresponsibility, since it is clear that a lot of financial support will be required for these populations.

The second factor is wealth. Despite the fact that global wealth is rising, theincome gap has grown wider, threatening civil society. Seventy eight percent of


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the world can be classified as poor, with eleven percent in the middle class, andonly eleven percent can be classified as rich. Each and every company shouldstrive to be involved in attempting to balance this distribution of wealth. Thetrend of the rich growing richer while the poor grow poorer should beeliminated, since it is unethical for some people to have so much, and others tohave nothing at all. The third factor is nutrition. There are millions of peoplewho are malnourished, amidst an abundance of food. Thousands die of hunger every year, while rich corporations blow millions on fancy holidays for their executives. It is crucial for each company to take time and reflect on thefinances it spends on benefits for its executives, as compared to that spent onhelping the needy in society. While these benefits are vital for employeemotivation, they should not be taken overboard at the expense of the sufferingmasses.

Education is another critical factor that should be considered in the design of corporate social responsibility programs. Basic education is widespread, butopportunities for learning continue to elude many. Over one hundred millionchildren are not in school, with ninety seven percent of these being indeveloping countries. One in every five adults globally is illiterate, which arestaggering figures given the widespread opportunities to learn available today.Corporate are faced with the challenge of promoting education by setting upschools, and funding educational development programs. Education can also beencouraged by taking in interns and trainees and giving them an opportunity tolearn the tricks of the job, which will enable them compete fairly in the

corporate world (Crowther and Rayman-Bacchu 169).In conclusion, this paper has shown that corporate social responsibility isa vital element for nay business corporations. It has been shown that there aremany different areas in which a company may choose to focus its corporatesocial responsibility. The first area of focus in corporate social responsibility iswith regard to the environment. Other areas that should be considered in thedevelopment of corporate social responsibility programs are education, health,nutrition and employment. Social responsibility investment combinesinvestors financial goals with their obligation and dedication to factors that

ensure the well being of society such as environmental friendly practices,economic growth and justice in society (Anderson 9). These elements are notonly aspects of corporate social responsibility, but also a show of the ethicalstandards of a company. It is unethical for some individuals to own so muchand earn so much, at the expense of other suffering members of society. It isalso unethical for companies to engage in environmentally degrading practicesthat result in illnesses and loss of life. It can be concluded that Social corporate


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responsibility and the maintenance of high ethical standards is not an option but an obligation for all business.

Corporate Social Responsibility (CSR) is a concept whereby organizations considerthe interests of society by taking responsibility for the impact of their activities oncustomers, employees, shareholders, communities and the environment in allaspects of their operations. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily takingfurther steps to improve the quality of life for employees and their families as well asfor the local community and society at large.

The debate about CSR has been said to have begun in the early 20th century, amid

growing concerns about large corporations and their power. The ideas of charity andstewardship helped to shape the early thinking about CSR in the US. There is nouniversally accepted definition of CSR- Selected definitions by CSR organizationsinclude:

"Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving thequality of life of the workforce and their families as well as of the local community and society at large" World Business Council for Sustainable Development

"CSR is about how companies manage the business processes to produce anoverall positive impact on society."

"Corporate social responsibility is undertaking the role of "corporate citizenship"and ensuring the business values and behaviour is aligned to balance betweenimproving and developing the wealth of the business, with the intention to improvesociety, people and the planet"

"CSR is a company's commitment to operating in an economically, socially and

environmentally sustainable manner whilst balancing the interests of diversestakeholders." CSR Asia

"Corporate social responsibility is the commitment of businesses to contribute tosustainable economic development by working with employees, their families, thelocal community and society at large to improve their lives in ways that are good for

business and for development." International Finance Corporation


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To demonstrate good business citizenship, firms can report compliance with anumber of CSR standards The scale and nature of the benefits of CSR for anorganization can vary depending on the nature of the enterprise, and are difficult toquantify, though there is a large body of literature exhorting business to adopt

measures beyond financial ones CSR may be based within the human resources, business development or public relations departments of an organization, or may begiven a separate unit reporting to the CEO or in some cases directly to the board.

Some companies may implement CSR-type values without a clearly defined team orprogramme. The business case for CSR within a company will likely rest on one ormore of these arguments:

A CSR programme can be seen as an aid to recruitment and, particularly within thecompetitive graduate student market. Potential recruits often ask about a firm's CSR

policy during an interview and having a comprehensive policy can give an advantage.CSR can also help to improve the perception of a company among its staff,particularly when staff can become involved through payroll giving, fundraisingactivities or community volunteering. In crowded marketplaces companies strive fora unique selling proposition which can separate them from the competition in theminds of consumers.

CSR can play a role in building customer loyalty based on distinctive ethical values.Business service organizations can benefit too from building a reputation for

integrity and best practice. So businesses should be more responsible for theirenvironment. It is difficult to concede if CSR is purely driven by the intentions of corporate members to exert ethical conduct or is it a distraction and/or opportunity to over shadow or distract society and consumer perception based on the moralstanding of an organization

There are major challenges in today's corporate arena that impose limitations to thegrowth and potential profits of an organization. Government restriction, tariffs,globalization, environmentally sensitive areas and exploitation are problems that arecosting millions of dollars for organization. It may be apparent that in some cases,ethical implications are simply a costly hindrance that potentially forces businessesto finding alternative means to shift viewpoints.

It is certainly a potential strategic tactic to gain public support to sustain acompetitive advantage. Another plausible driver of CSR is by independent mediatorsto ensure that corporate goals don't harm or disadvantage anyone or environment.


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Unfortunately many consequential events are a reason why CSR policies becomeevident. But CSR opens up a whole new horizon for safer and better opportunities for

both the employer and employee. It is now for more organizations to realize theimportance of CSR, and take the right step towards success.

Corporate Social ResponsibilityBy luvmaverick , April 2012 | 12 Pages (2,809 Words) | 891 Views

When we place our first step into the world of business, we have heardbusinessmen speak expressively about the aim of the company is tomake profit and not to address social responsibilities. This is onlycertain truth to this statement as the world we live in now is evolving.

People in the current era are more concern about social responsibilityespecially with corporations and their behaviours and plans. There is anincreasing demand on businesses to have a social conscience andtaking serious responsibility for providing employment, eliminatingdiscrimination, ethical working environment and whatever else is relatedto having a social conscience.

In todays business world, corporate social responsibility (CSR) is anessential element for all corporations. Business around the world areprogressively applying CSR, believing that it will be able to bring them

competitive advantage and sustainability.

Before we progress into our discussion, we will have to define themeaning of corporate social responsibility (CSR) and the pyramid of corporate social responsibility. One of the most important elements of corporate social responsibility, Stakeholder Theory, will also bediscussed. Defining sustainability and the guidelines to it will also bediscussed in the essay. Last but not least, we will also be discussingabout future sustainability models and a case study that hasincorporated corporate social responsibility to make their business

operation more sustainable will be discussed.

An infinite number of definitions of CSR exist, going across from thesimplistic to the complex, and a range of associated terms and ideas,including corporate sustainability, corporate governance, the triplebottom line and business sustainability. The terminology itself haschanged over the course of time has also suggest that the meaning
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attributed to concepts such as CSR will continue to evolve in synch withbusiness, political and social developments around the world....[continues]

What is corporate culture? Corporate is a shared pattern of beliefs,expectations and meanings that influence and guide the thinking andbehaviors of the members of that organization. Culture is different fromone organization to another; every organization has its own culture.Some of organizations their culture based on obey the rules and othersbased on values. Culture is present in different elements like; problemsolving approach, speed of work, the competitive environment,incentives and Hierarchical structure.

Entrepreneur.com defines corporate culture as a blend of the values,beliefs, taboos, symbols, rituals and myths all companies develop over time. It is not unlike the culture of a country, region or ethnic group, justsmaller in scale."

ntegratingCorporateSocial Responsibility Intoa CorporateCulture, the Questto EmbedIntegrity into the Workplace

Authors Randall G. Gossen, Garry J.Mann, Laura de Jonge, Nexen Inc.

Source SPE International Conference onHealth, Safety and Environment inOil and Gas Exploration andProduction, 20-22 March 2002,Kuala Lumpur, Malaysia

ISBN 978-1-55563-947-1

Copyright Copyright 2002, Society ofPetroleum Engineers Inc.

Preview AbstractNexen Inc. (the Company), anindependent global energy andchemicals company, has madesignificant strides in the area ofcorporate social responsibility
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(CSR). Developments such asglobalization, environmental issues,competitive labor markets andadvances in technology have

accelerated the pace at which theseand other corporate socialresponsibility issues have risen upthe corporate agenda. The playingfield for multi-national enterpriseshas been forever altered.In response to these emergingissues and encouraged by Canada'sMinister of Foreign Affairs, theCompany championed and adoptedthe International Code of Ethics for

Canadian Business (the Code) in1997. The Code receivedendorsement from the Canadiangovernment and support from manycompanies and businessassociations. The Code providesprinciples for communityparticipation, environmentalprotection, business conduct andemployee health and safety. TheCompany's Integrity Program is thevehicle by which the Code isimplemented. The Integrity Programfocuses on ensuring that the Codeis more than simply words. Itsprinciples have been successfullytranslated into comprehensive andinnovative practices which addressindustry considerations faced bycompanies today and which benefitthe company and its stakeholders.Corporate social responsibility is anarea of emerging global importance.Besides being the right thing to do,fostering a culture of integrity hasensured that the Company addsshareholder value over the longterm and makes a difference in its


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broader sphere of influence.IntroductionCorporate social responsibility(CSR) is defined by the World

Business Council on SustainableDevelopment as the continuingcommitment by business to behaveethically and contribute to economicdevelopment while improving thequality of life of the workforce andtheir families as well as the localcommunity and society at large. Inaddition, it is important to recognizethat CSR provides a vehicle bywhich business can demonstrate its

commitment and engagement inaddressing many of the concernsidentified by those that opposeglobalization.The Company considers the keyelements of CSR to be: businesspractices; community investment;safety and environment; employeerelations; and supplier and customerrelations.Key Issues/ChallengesAlthough only recently emerging inthe public spotlight, efforts toaddress corporate socialresponsibility concerns are not new.The Universal Declaration forHuman Rights was developed over50 years ago. The far reachingUnited States Foreign CorruptPractices Act was enacted ageneration ago.While the creation of these andother instruments were importantmilestones, they have not removedthe barriers to investment that existfor many companies. A survey ofbusiness people by the World Bankshowed that, other than tax


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1. Beliefs, stories, and experiences: When a new hire begins, what are the

stories he is told about the organization? About the people? About past

events? What was made those events noteworthy? Who are the company

heroes and what have they accomplished that garnered them such a positive

reputation that it deserves to be respected? More importantly, can these

behaviors be emulated by others?

2. Goals, norms, and history: "If you don't know where you are going, you will

probably end up somewhere else!" Anecdotal surveys show that the

overwhelming majority of employees are clueless about their overall company

goals. While it's true that most know they should do a good job, many are

unclear about the specifics and the nuances. Sure, the goal of the Ford Motor

Company is to make cars, the local mattress factory to produce bedding, and

the accounting company to prepare your tax returns. But to what degree of quality? And what about customer service? Where in the company

environmental equation does that fit?

Surprisingly, these questions occasionally go unanswered. To help the

employee better understand the culture, the entrepreneur and the employees

all need to understand specifically where the organization is going, how it will

get there, by when, and with what degree of quality and success. Without this

knowledge, the company is doomed to be an underperformer or possibly to

fail.

Norms define and describe what is acceptable: "the way things are done

around here" from the simple to the complex. The former may basically

include how early you have your staff come to work in the morning or how

late they remain past 5 pm. The complex may involve whether to work as a

highly productive individual or to work together as an accomplished team

(collaboratively or competitively?). Not knowing the difference can easily

create problems for the individual and the work unit.

History, like experience, provides a basis for behavior. It helps employees

distinguish between what has been tried and succeeded and those things that

were attempted but failed; it allows workers to move beyond past failures

through to innovation and achievement. History can serve as a foundation or


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jumping off point to launch into new ventures or new procedures and policies.

It helps the innovator deal with complainers who say, "We already tried that.."

Supported by history, the employee can point out how this newest attempt will

differ from and alter the past.

3. Symbols, values, rituals: Symbols are crucial icons or signs that tell the

observer, visitor, and even the employees something about the organization.

Nameplates and logos on doors, windows, walls, and stationery tell every

person seeing them something about the company. These symbols can be as

concrete as a name and as abstract as cleanliness, high tech, modernity, or

quality. They reveal to all a measure of the company story. Something as

simple as names on cubicles says that even though we may be cubby-holed,

the company believes that people are important. A sparkling floor says that

the company takes pride in its appearance and providing a clean environmentfor all workers.

One reason many people chose to work in an organization is because of its

values: honesty, pride, concern for others, independence, positive

reinforcement for a job well done or well begun. These values may be

unwritten but, nevertheless, are still potent qualities that exist to inform

employees about the company, especially when a clash of values occurs. Is it

more important, for example, to get products/ information/services out the

door? Is it more valuable to complete one polished product or many that are

in great shape but dull in appearance? The confusion can lead to diminished

performance.

Rituals are traditions or ceremonies that occur on a regular basis. Quite often,

organizations miss opportunities to use rituals to improve morale. Simple

events such as honoring birthdays, anniversaries, important successes, or

positive announcements all serve as occasions for the company to say, "We

value you and we want to honor or acknowledge you and your

accomplishments." These events can be inexpensively acknowledged with

lunches, cakes, coffee or cards. There are many low-cost methods

(expensive ones, too!) of telling employees how important they are. The

results can be very powerful!


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By reviewing these attributes of corporate culture, an empowering entrepreneur can

better assess the current status of an organization with an eye to modifying or

eliminating the parts that are dysfunctional or impractical, then replacing them with

qualities that will improve your working environment, productivity, and employee

satisfaction. Then your culture will be positive, too!

Read more: http://www.entrepreneur.com/article/204890#ixzz2WeeZdCOo
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