Business Studies Paper on Corporate Social Responsibility

Corporate Social Responsibility

Introduction

Corporate Social Responsibility policies guides operations of most multinational corporations, such organizations pride themselves because they are able to meet set goals and objectives. According to Runde (2011), a good CSR practice is critical in driving organizations to more direct benefit characterized by efficient and effective business operations. However, multinational corporations are faced with challenges as they try to implement CSR due to several changes that have occurred in CSR in the past 10 years.

Samsung CSR

Samsung Corporation addresses CSR aspects of the business in four dimensions namely; social contributions, green management, health/safety of workers and sharing growth.

First, the company encourages independence and self-reliance among youths through sponsored vocation education programs in society. Training programs encourage youths to discover most pressing issues in society and encourage them to formulate solutions.

Second, Samsung Corporation has implemented green workplaces that reduce greenhouse gases emission. This is aimed at protecting the delicate ecosystem and thus mitigates effects of climate change to the environment. Moreover, the company also manufactures products that are environmentally friendly and less harmful to their valuable customers.

Third, Samsung has created safe and healthy workplace for its employees through strict observance of internationally recognized safety standards, and continuous monitoring and improvements of workplace procedures. Lastly, the company also share growth with local communities and adopt healthy partnerships with suppliers and other stakeholders.

CSR Challenges

First, a greater percentage of company’s budget is taken up by employees’ health and safety demands, particularly when Samsung Corporation tries to implement workplace safety through provision of safe environments, subsidized health care provisions, insurance and compensation. Therefore, budgetary allocations and constraints is greatest challenge in implementing CSR.

Second, Samsung is working with multiple suppliers; this has posed challenges in addressing comprehensive socially responsible practices. For that matter, Samsung has found it difficult to discuss all concerns by suppliers where some suppliers feel that they are not treated to the same threshold as others.

Lastly, sustainability of programs has also posed challenges. Programs and activities such as recycling raw materials and reducing energy consumption have been incorporated in business activities today. However, despite the company working so hard to protect the environment through recycling materials to implement green practice, Samsung has been faced with resistance to change. For that matter, employees are trained on new work methods but still operate using old methods. Therefore, sustainability practices must be well documented and employed in the entire company activities.

 

Changes in CSR over the past 10 years

Samsung Corporation has incorporated changes to their CSR policies compared to the past when CSR initiatives were viewed as unrelated to business activities. To achieve competitive advantage, Samsung Corporation has recognized the need to align initiatives to business models and goals. Today, there is need for multinational corporations to increase leverage on supply chains, sourcing, human resource, technologies and new markets.

First, the perception of CSR has greatly changed. In the last decade, people argued that the sole responsibility of a company’s CSR initiatives was to give value to its stakeholders. However, Samsung recognizes that CSR has changed to the extent of being necessary and beneficial to all stakeholders such local communities, customers, owners, supplies and the environment.

Second, company set-ups have changed to social institutions that reinforce their own long-term sustainability and profitability. Moreover, trust has also changed; it is an important asset to company executives, shareholders and customers in generation of company synergies.

Lastly, improved integrity is another reason Samsung has change its CSR initiatives. Thus, increased expectations of companies has ensured that the organization not only generate profits but also protect business stakeholders.

 

 

 

Conclusion

CSR initiatives assist businesses to succeed through achievement of set goals and objectives. Today, business stakeholder is important for any organization that wants to survive. Dudovskiy (2015) asserts that multinational corporations must take advantage of opportunities created while recognizing the need to merge responsible business activities into investments that would benefit local communities and economies.

 

References

Dudovskiy, J. (2015). “Samsung Corporate Social Responsibility.” Research Methodology,

http://research-methodology.net/samsung-corporate-social-responsibility/ Accessed 24 July, 2017.

Runde, D. (2011). “The Evolution of Corporate Social Responsibility, Cooperation between the

Private Sector and the U.S. Government.” Center for Strategic and International Studies https://www.csis.org/analysis/evolution-corporate-social-responsibility Accessed 24 July, 2017.