In this entry, I am going to describe corporate social responsibility (CSR).
The definition of CSR
Corporate social responsibility is considered to be an essential factor for a continuous success in a large business. CSR is a corporate plan to take responsibility for the environment and social welfare by operating its business (Shaw et al., 2013).
The advantage of CSR
1) Satisfied employees: employees want to feel proud of the organisation they work for. An employee with a positive attitude towards the company, is less likely to look for a job elsewhere.
2) Satisfied customers: research shows that a strong record of CSR improves customers' attitude towards the company. If a customer likes the company, he or she will buy more products or services.
3) Positive public relations: CSR provides the opportunity to share positive stories on the Internet. Companies no longer have to waste money on expensive advertising campaigns.
4) Long term future for business: CSR can achieve long term results and business continuity.
From now on, I will show how important CSR is in business world by using the example of Google and Johnson & Johnson.
Google was found in 1998 by Stanford University students Larry Page and Sergey Brin. In the present, Google has grown into the biggest corporation and is one of the most popular internet search engines in the world. As a leading company of Internet technology, Google should practice its responsibility of CSR. However, there has been a voice of concern from its various interests. The issue is related to invasion of privacy from street view.
Case 1
According to CBC news (2010), Canadian authorities announced that Google
violated Canadian privacy law by inappropriately collecting data of users from
vehicles of Street View through the Wi-Fi network. The information collected by
vehicles was e-mail address and password, which is sensitive personal
information.
Unethical behavior of Google made its customers feel questionable about the
company, which can affect likability, reputation and tangible or intangible
assets. According to BBC news (2012), Google showed the lowest percentage of
search engine market share in the UK. Its figure dropped below 90.00 per cent.
However, competitors, such as Microsoft's Bing and Yahoo had an increase. This
is because credibility of Google has been lessened due to its conduct. In
conclusion, wrong act of Google has something to with customers.
Johnson & Johnson
(J&J) was established in 1886 and is a multinational healthcare and
pharmaceutical company. It has a lot of products it has operated on the
business. It produces health care products, prescription products and medical
devices. (Source Watch, 2012). As a leading company of heath care product,
J&J should perform its duty of CSR but there has been a boycott from 2011.
This is because its baby shampoo contains carcinogens.
Case 2
According to Johnson
(2011), on behalf of 3.5 million people in the US and other countries, the
Campaign for Safe Cosmetics petitioned to J&J stop using
formaldehyde-releasing preservatives and 1,4-dioxane, carcinogens. Furthermore,
the campaign agitated consumers should boycott Johnson’s products until J&J
fully removes cancer-causing chemicals from its products to pressure it.
The affair is closely associated with stakeholders’ involvement especially, consumers and shareholders.
The campaign for safety cosmetics is an organisation of consumers. In
fact, the campaign initiated a boycott on J&J’s products in 2009 (Johnson,
2011). It seems to be a highly influential movement. This is because according
to J&J (2012), the sales volume in the US decreased 600 million dollars,
compare to that in 2010 even though the worldwide sales increased 3.1 per cent.
Therefore, it was directly related to shareholders as well. Obviously, they were
not happy with the performance in the US because of the less of the dividend
they earned. In conclusion, especially the consumer group and the shareholders were
involved in this scandal amongst stakeholders.
In conclusion, I discussed the corporate social responsibility (CSR). These days, CSR is an important factor
in business management. That is to say, CSR is considered to be a condition of
sustainable growth. What is more, I illustrated how important CSR is, showing real cases of Google and Johnson & Johnson. Therefore, companies all over the world should follow CSR for the sake of maintaining success.
