Corporate Social Responsibility in Case Studies 1

The Role of Corporate Social Responsibility in Case Studies

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Corporate Social Responsibility in Case Studies 2

The Concept of Corporate Social Responsibility

Business operations focus on the core need and objective of making money for

shareholders. Managers and directors of business firms develop, implement, and enforce

strategies that hold the highest potential to reward shareholders with dividends as returns on

investment. Directors and managers of the firms remain aware of the need to participate in

initiatives that promote the firm's image among its customers and members of society

(Carroll & Brown, 2018, p.40). Still, the managers and directors may not declare publicly that

the primary intention of the firm remains to generate money for shareholders, sometimes at

the expense of the sociocultural, economic, and environmental aspects of society. Instead,

managers and directors claim that they balance the community's sociocultural, economic, and

ecological needs against the compounding need to make money for investors (Carroll &

Brown, 2018, p. 40). Operations of enterprises focus on minimizing expenditure and

operating costs to enable profit maximization for investors.

The debate about the role of business organizations and the impact of their production

activities on the sociocultural, economic, and environmental aspects of society remains

inconclusive. Views by stakeholders vary from those who believe that business organizations

should do more to mitigate the sociocultural, economic, and ecological impacts of their

operations on society (Carroll & Brown, 2018, p. 41). On the other hand, other stakeholders

argue that the government should actively protect and improve society's sociocultural,

economic, and environmental aspects as mandated by laws. Scholars and drivers of opinions

insist that the term corporate social responsibility encapsulates the debate over firms' duties

based on their role and the impact of their operations in society (Carroll & Brown, 2018, p.

41). However, emerging issues in the business environment, such as the rise in environmental

pollution, wage inequality, child labor, and industrialization, continue to broaden and reshape

the debate on corporate social responsibility.

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The ongoing debate about corporate social responsibility leaves loopholes for further

interpretations and reframing, allowing for practical application and implementation. Studies

reveal that corporate social responsibility remains a contested concept that lacks a firm

definition; thus, it allows for flexibility in interpretation (Ashrafi, Adams, Walker, and

Magnan, 2018, p. 674). Managers and directors identify and appreciate the role of

stakeholders and the broader public in facilitating the success of business operations.

Therefore, the managers and directors continuously develop strategies to create an enabling

relationship between the firm, stakeholders, and members of the wider public. Consequently,

studies reveal that managers and directors attempt to negotiate their interactions with

stakeholders and members of the wider public to enhance the potential for growth and

development of the firm (Ashrafi, Adams, Walker, and Magnan, 2018, p. 674). Still, the

business runs the risk of failure when the managers cannot communicate the core principles

of operation regarding the firm's role in the desire to participate in the sociocultural,

economic, and environmental improvement of the operating environment.

Corporate social responsibility refers to the sustainable business model in which the

firm remains accountable and responsible regarding the community's social, cultural,

environmental, and economic spheres. Corporate social responsibility serves as a reminder to

stakeholders and members of society of an organization's active role in protecting and

conserving the critical aspects of culture (Barnett, 2018, p. 230). Additionally, contemporary

investors remain conscious and interested in a firm's deliberate initiative to mitigate the

socio-economic, political, and environmental challenges faced by members of society. The

investors use data from different platforms on the participation of firms in corporate social

responsibilities to facilitate the decision-making process of investing (Barnett, 2018, p. 230).

Incorporating the corporate social responsibility initiatives in case studies serve as evidence
Corporate Social Responsibility in Case Studies 4

for actual and potential investors on the active participation of organizations in improving the

lives of the members of society; hence, a positive image for potential investment.

Reasons for Engaging in Corporate Social Responsibility (CSR)

Managers' and directors' approach to engaging with members of society through

corporate social responsibility facilitates the development and implementation of strategies

for maximized outcomes. Still, analyzing different theories promotes a more profound

understanding of factors that prompt business organizations to engage in corporate social

responsibility. The stakeholder theory posits that managers and directors lead business

organizations in committing to corporate social responsibility ideals to enhance relationships

and establish value for stakeholders (Dunn and Harness, 2018, p. 17). The theory provides

that while the business focuses on making profits for growth and survival, the primary

purpose for initiating and implementing corporate social responsibility strategies emanates

from the desire to enhance the well-being of stakeholders (Dunn and Harness, 2018, p. 17).

Corporate social responsibility gears to offer the firm's legitimacy and reputation in the eyes

of stakeholders – it increases the firm's "social license to operate" and the advancement of

brand value and reputation.

Case studies serve as documents of reference for the firm and upcoming organizations

on the practical initiatives and models for effective interaction between the firm and society.

An organization's growth, success, and survival lies in the potential for identifying effective

strategies for linking the business with all stakeholders to create an enabling environment for

running operations (Abbas, 2020, p. 242). Organizations refer to information from previous

operations with the potential for bringing success to streamline initiatives that guarantee

success and growth. Data on corporate social responsibility in case of studies provide

guidelines for firms to engage society members actively. The information enables the

managers of firms to identify areas of strength, weakness, opportunities, and threats; hence, it
Corporate Social Responsibility in Case Studies 5

facilitates modeling an active strategy for community engagement (Abbas, 2020, p. 242).

Case studies serve as the blueprint for the managers of new firms for developing and

structuring plans by the managers of organizations.

Profit maximization remains the primary objective of business enterprises because it

guarantees growth, development, and survival in an increasingly competitive market and

industry. Studies reveal that local governments, global organizations, and stakeholders in the

business industry resorted to developing, implementing, and enforcing laws to guide business

organizations in creating an enabling relationship with the broader public (Dunn and Harness,

2018, p. 18). Managers and directors of business organizations use the triple bottom line

theory of corporate social responsibility to develop and create a balance between the three

crucial aspects of the interaction between the business and the wider public – people, planet,

and prosperity (Dunn and Harness, 2018, p. 18). Participating in corporate social

responsibility provides a mechanism for the organization to mitigate sociocultural and

environmental issues while maximizing its profitability for prosperity.

The practicality of initiatives that endeavor to improve the sociocultural,

environmental, and economic spheres of society relies on the potential for deliberate

corporation between different stakeholders in the community – the government,

organizations, and members of society. Case studies provide information for other

stakeholders wanting to engage in corporate social responsibility initiatives (Abbas, 2020, p.

242). The case studies allow the firms to identify areas that may suffer neglect and need

additional capital and human investment to facilitate a holistic approach to mitigating the

issues. The mandate of the government remains service provision to the members of society.

For example, firms actively engage in environmental conservation and protection through

tree planting, building gabions, and cleaning activities. While the government may provide

guidelines for achieving the highest outcome, it may redirect funds allocated for
Corporate Social Responsibility in Case Studies 6

environmental protection and conservation to other activities that promote the well-being of

community members (Barnett, 2018, p. 248). Corporate social responsibility data in case

studies facilitate corporation between stakeholders for maximized results.

Challenges to Corporate Social Responsibility

The multiple challenges and criticisms facing corporate social responsibility interfere

with its practice and conceptualization, thus, limiting its productivity. The emergence,

development, and continued use of technology in business communication causes changes in

public communication patterns; hence, it establishes an enabling environment for creating

new arenas for scrutiny of Corporate Social Responsibility (CSR) (Tsalis, Malamateniou,

Koulouriotis, and Nikolaou, 2020, p. 2). Critics of corporate social responsibility initiatives

argue that firms use manipulative communication styles to engage members of society on

corporate social responsibility initiatives. The critics point out that while firms insist that

corporate social responsibility initiatives focus on improving the well-being of all

stakeholders, the primary beneficiary of the strategies remains the firms. Furthermore, the

difficulty in quantifying the impact of corporate social responsibility initiatives in enhancing

the lives of members of society aggravates the situation (Tsalis, Malamateniou, Koulouriotis,

and Nikolaou, 2020, p. 2). Critics argue that the impact of CSR varies from different

perspectives; thus, claims by business organizations to quantify their roles in mitigating

sociocultural, economic, and environmental issues lack merit.

The effectiveness of corporate social responsibility lies in its ability to address the

sociocultural, economic, and environmental challenges faced by members of society. Critics

argue that the concept of CSR does not account for contexts; hence, it becomes difficult to

quantify its impact in addressing societal issues (Tsalis, Malamateniou, Koulouriotis, and

Nikolaou, 2020, p. 3). Business organizations engage in corporate social responsibility

without context. For example, business organizations operating in state-dominated markets

Corporate Social Responsibility in Case Studies 7

such as China enjoy the limited potential to act on corporate social responsibility in their

locality. The Chinese Government interferes with business operations through state-owned

firms; therefore, quantifying the effectiveness of corporate social responsibility of the few

private firms remains a challenge (Fasoulis and Kurt, 2018, p. 11). On the other hand, firms

in less-government-dominated markets enjoy the potential to develop strategies that allow

them to intervene in the sociocultural, economic, and environmental issues that limit society's

potential to grow and develop.

The role of governments in business remains to provide an enabling environment

where firms exchange goods and services with the broader public for profitability. Again, the

government remains mandated to provide essential services and social amenities to improve

the living standard of the wider public (Carroll, 2021, p. 5). Still, government intervention in

managing corporate social responsibility initiatives' development, implementation, and

enforcement lack structure to improve related outcomes. Business organizations voluntarily

engage in corporate social responsibility programs; thus, the firms select and decide on the

nature, quality, and quantity of investment they channel to CSR activities. Therefore, the

voluntary nature of CSR engagement and participation creates loopholes for misleading

communication. For example, business organizations continue to develop and share

misleading information about the environmental impact of the goods and services that they

produce – greenwashing (Carroll, 2021, p. 7). Realization of the deceptive communication

plants mistrusts among the members of the broader public regarding the potential of CSR

initiatives to address the sociocultural, economic, and environmental challenges in society.

An outcry by the wider public on the impact of business operations on society's

sociocultural, economic, and environmental aspects prompted firms to develop strategies to

help mitigate the issues. Studies reveal that campaigns to identify business organizations that

contributed to the degradation of the sociocultural, economic, and environmental aspects of

Corporate Social Responsibility in Case Studies 8

society and their related mitigation efforts influenced the buying trends of consumers

(Jermsittiparsert, Siam, Issa, Ahmed, and Pahi, 2019, p. 743). Individuals used information

from firms and community activists to determine the firms to engage in business.

Consequently, managers and directors of business organizations resorted to developing

campaigns geared to show their participation in CSR programs. However, studies reveal that

some firms still enjoy a significant stake in markets and industries despite not engaging in

CSR initiatives (Jermsittiparsert, Siam, Issa, Ahmed, and Pahi, 2019, p. 744). Firms remain

focused on producing goods and services that meet the needs and objectives of customers at

the expense of addressing the sociocultural, economic, and environmental issues in society.

Push by business organizations to participate in addressing the sociocultural,

economic, and environmental issues facing society causes confusion among the wider public.

The role of government remains to provide essential services and social amenities to enhance

the life of the wider public (Bux, Zhang, and Ahmad, 2020, p. 6). The need to impress

members of society by developing and engaging in corporate social responsibility programs

consumes practices that remain the primary mandate of states and municipalities. Corporate

social responsibility programs continue to render states and cities irrelevant because they

contribute to addressing society's sociocultural, economic, and environmental challenges at

the expense of elected leaders. Consequently, members of the wider public may encounter

confusion where there exists a need to engage in follow-ups and hold individuals accountable

(Bux, Zhang, and Ahmad, 2020, p. 7). The voluntary aspect of corporate social responsibility

engagement further aggravates the situation because members of the wider public may lack

the basis for calling out firms that lack the commitment to the corporate social responsibility

issues that they resort to addressing.

Societies continue to grapple with sociocultural, economic, and environmental issues

that emanate from the impact of business operations by firms. Some problems that limit the
Corporate Social Responsibility in Case Studies 9

potential for growth and development of societies due to business operations include

environmental degradation, air and water pollution, child labor, poor pay, low wages, poor

housing, and damage to social amenities (Font and Lynes, 2020, p. 8). Studies reveal that

business organizations continue to develop and implement strategies to mitigate the impact of

their production activities on societies. Still, the studies show that companies select less

challenging initiatives that promise to boost profitability at the expense of more complex

issues and systemic problems. For example, studies reveal that more than 60% of firms that

contribute to environmental degradation opt to engage in cleaning exercises at the expense of

addressing pressing issues, such as limiting the carbon emission level during production

activities (Font and Lynes, 2020, p. 10). Focusing on less challenging issues minimizes the

effectiveness of CSR in addressing societal issues.

Importance of Corporate Social Responsibility

Business activities thrive in peaceful environments, allowing producers and

consumers to exchange goods and services. Managers and directors of business organizations

develop and push for strategies that create an enabling and peaceful environment for business

transactions (Neves, Santos, Proença, and Pinho, 2022, p. 28). Corporate social responsibility

programs provide mechanisms for business organizations to promote peace and development.

For example, contemporary firms continue to invest heavily in sports and related activities.

While the views on the strategy remain contentious, the effort to unite people and promote

peace does not get lost. Organizing sports activities brings people from different socio-

economic, cultural, and political backgrounds together; thus, it encourages tolerance and

acceptability among individuals (Neves, Santos, Proença, and Pinho, 2022, p. 31). During the

sports activities, stakeholders agree to develop and share messages that enhance tolerance and

understanding to promote togetherness and peace; thus, it creates an environment where

businesses can grow and thrive.

Corporate Social Responsibility in Case Studies 10

Corporate social responsibility provides footprints for business organizations' efforts

to mitigate sociocultural, economic, and environmental societal issues. Studies reveal that

firms use their online presence to engage community members in advancing corporate social

responsibility programs (Ferrell, Harrison, Ferrell, and Hair, 2019, p. 494). The studies

further provide that members of the wider public apply less strict scrutiny of the profitability

of organizations that engage in measures to address societal challenges. Corporate social

responsibility programs cushion firms that make huge profits from hate by members of the

wider public. It communicates to the people that the firm remains conscious of the role of the

socio-political, economic, and environmental aspects of society in contributing to its

profitability and growth (Ferrell, Harrison, Ferrell, and Hair, 2019, p. 495). Studies reveal

that there lacks data on the potential of corporate social responsibility to promote sales for

organizations; still, engaging in corporate social activities allows firms to develop and

advance a positive brand name – aspects that create the potential for increased sales.

Companies with the potential to hire and retain qualified employees enjoy the

potential for growth and success because it helps minimize overhead and operating costs for

recruiting employees. Studies reveal that potential employees deliberately try to join firms

that advance corporate social responsibility aspects that align with their sociocultural beliefs

(Ferrell, Harrison, Ferrell, & Hair, 2019, p. 497). Therefore, corporate social responsibility

enables firms to develop stronger employer brands to help in attracting a qualified and

environmentally conscious workforce. The positive image created by organizations due to

their participation in corporate social activities provides the background for potential

employees to gauge and decide on the need to join the firms. However, potential employees

risk engaging in untrustworthy firms where the organization shares misleading information

about their participation in corporate social responsibility programs (Ferrell, Harrison,

Ferrell, and Hair, 2019, p. 497). Managers and directors of firms should ensure that their
Corporate Social Responsibility in Case Studies 11

organizations engage members of the broader public through verified and authentic

information about their participation in improving society's sociocultural, economic, and

environmental aspects.

On the flip side, corporate social responsibility limits the potential of societies to

achieve sociocultural, economic, political, and cultural growth and development through

miscommunication of actual effort by firms. Studies reveal that more than 60% of

information about engaging in corporate social responsibility programs on organizations'

websites and online platforms mislead members of the wider public (De Freitas Netto,

Sobral, Ribeiro, and Soares, 2020, p. 9). Business organizations use unverified and

misleading information about their role in mitigating societal sociocultural, economic, and

environmental issues to attract investment and potential employees. Consequently, the spread

of misinformation contributes to the concept of greenwashing – developing and sharing

unsustained claims that deceive consumers about the environmental consequences of using

the organization's products. Greenwashing interferes with the deliberate effort to address the

growing problem of the climate crisis and its impact on the livelihood of the wider public (De

Freitas Netto, Sobral, Ribeiro, and Soares, 2020, p. 11). Organizations continue to ride on the

rallying call to mitigate production aspects that contribute to environmental degradation and

climate crisis through poor communication and misleading information at the expense of

deliberate efforts that identify and address the growing problem.

Conclusion

Corporate social responsibility remains a critical aspect for organizations because it

offers a mechanism for addressing challenges that emanate from production activities. The

corporate social responsibility programs include cleaning exercises, tree planting, reduction

of carbon emissions, and education programs. Participating in corporate social responsibility

programs provides a platform for business organizations to engage the members of society in
Corporate Social Responsibility in Case Studies 12

addressing sociocultural, economic, and environmental challenges in the community. It also

allows firms to develop and improve their brands because of the positive image built by

attempting to address societal issues. Still, corporate social responsibility suffers from

setbacks such as greenwashing and miscommunication that limit the probability to trust

related efforts. Furthermore, some organizations use corporate social responsibility to

promote their stake in the market at the expense of addressing social and environmental

issues. There exists the need for further commitment by firms to address challenges related to

their production activities.

Corporate Social Responsibility in Case Studies 13

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